Realtors who practice commercial real estate have reported an increase in annual gross income for the third year in a row, signaling the market is on the road to recovery. According to the National Association of Realtors 2013 Commercial Member Profile, transactions and sales volume have also increased since last year.
The study shows median annual gross income for 2012 was $90,200, an increase from $86,000 in 2011 and is at its highest level since 2008. Brokers and appraisers reported the highest annual gross income while sales agents reported the lowest.
The study’s results represent Realtors who practice commercial real estate; these NAR members conduct all or part of their activity in commercial sales, leasing, brokerage and development for land, office and industrial space, multifamily and retail buildings, as well as property management.
“The commercial market is showing signs of improvement, which is reflected in the positive trends in income, transactions and sales volume reported by our Realtor commercial members,” said NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park, Calif. “This is a hopeful sign for the future. Realtors who practice commercial real estate build communities by facilitating investment and promoting the sale and lease of commercial space. There’s no doubt that commercial market improvements will help spur economic recovery and growth for our nation.”
Commercial members completed a median of eight transactions in 2012, up from last year. The median sales volume also increased from last year and was $2,507,700. Brokers typically had higher sales transaction volumes than agents. The median dollar value of sales transactions was $433,600 and the median square footage was 10,400.
Similar to the median sales volume, the median lease transaction volume increased this year by more than $70,000. In 2012 commercial members reported a median lease transaction volume of $476,400. Twenty-one percent of commercial members did not have a leasing transaction in 2012. The median dollar value of lease transactions was $169,100 and the median square footage was 4,200.
Commercial members who manage properties typically managed 40,000 square feet, representing 15 total spaces. They also typically managed 16,000 total office square feet, representing six total offices.
A majority of commercial members, 63 percent, reported they derive more than half of their annual income from the real estate industry. Thirty percent of respondents did not derive any income from commercial real estate leasing in 2012. Only 32 percent derived at least half to all of their income from leasing property. A large percentage, 85 percent, of commercial members earned at least some personal income from commercial real estate investments.
Sixty percent of NAR’s commercial members are brokers. Licensed sales agents were the next largest segment at 25 percent. Most commercial members reported working in a firm that is local and 58 percent work within an office that has a mix of commercial and residential brokers and agents.
Investment sales proved to be the most popular business specialty among commercial members. Identified by the highest proportion of members as their primary business specialty, investment sales was also the top ranked secondary specialty area. Land sales and retail leasing followed closely behind.
The typical commercial member has been in commercial real estate for 15 years and involved in real estate in some capacity for 25 years. The median length of membership in NAR among commercial members was 17 years. With a median age of 59, commercial members are also predominately male. However, women are slowly coming into the business; 33 percent of those with two or fewer years’ experience are female, and sales agents have the largest representation of women with 29 percent.
The NAR 2013 Commercial Member Profile was based on a survey of 1,796 commercial practitioners. Income and transaction data are for 2012, while other data represent member characteristics in 2013.
The National Association of Realtors, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
Related Stories
| Jan 3, 2011
Chicago Architectural Foundation’s media expert takes all 85 tours in one year
Jennifer Lucente, the social media expert at the Chicago Architecture Foundation has completed her year of taking tours—taking all 85 tours in 2010. The challenge that began last January with a tour of the Board of Trade building has ended today with the architecture foundation’s newest tour: Razzle Dazzle – featuring the Loop theater district followed by a celebration at the Chicago Theatre.
| Dec 28, 2010
Project of the Week: Community college for next-gen Homeland Security personnel
The College of DuPage, Glen Ellyn, Ill., began work on the Homeland Security Education Center, which will prepare future emergency personnel to tackle terrorist attacks and disasters. The $25 million, 61,100-sf building’s centerpiece will be an immersive interior street lab for urban response simulations.
| Dec 20, 2010
Architect Adrian D. Smith on zero-energy cities, new technologies, and high density.
Adrian D. Smith, FAIA, RIBA, is co-founder (with Gordon Gill) of Adrian Smith + Gordon Gill Architecture, Chicago. Previously, he was a design partner in the Chicago office of Skidmore, Owings & Merrill (1980-2003) and a consulting design partner from 2004 to 2006. His landmark structures include the Jin Mao Tower (Shanghai), Rowes Wharf (Boston), and Burj Khalifa (Dubai, U.A.E.), the world’s tallest structure. He recently collaborated with Gordon Gill to design the world’s first net-zero-energy skyscraper, Pearl River Tower, now nearing completion in Guangzhou, China. This account is based on his recent remarks at the Illinois Institute of Technology.
| Dec 17, 2010
BIM Tools Enhance Project Value
The Building Team for a renovation project at Georgia Tech uses BIM and 3D design tools to solve a complex millwork problem.
| Dec 17, 2010
Historic Rhode Island hotel reborn with modern amenities
The iconic Ocean House resort in Watch Hill, R.I., had to be torn down in 2005 when systemic deficiencies made restoration unfeasible. Centerbrook Architects and Planners, Centerbrook, Conn., designed a new version of the hotel, working with preservation societies to save or recreate favorite elements of the original building, and incorporating them into the contemporary structure. The new resort has 49 guest rooms and 23 residences, plus banquet halls, a corporate boardroom, a private clubroom, a spa and fitness center, an indoor lap pool, a bar, and the obligatory international croquet court. Dimeo Construction, Providence, R.I., was the construction manager.
| Dec 17, 2010
Gemstone-inspired design earns India’s first LEED Gold for a hotel
The Park Hotel Hyderabad in Hyderabad, India, was designed by Skidmore, Owings & Merrill to combine inspirations from the region’s jewelry-making traditions with sustainable elements.
| Dec 17, 2010
Condominium and retail building offers luxury and elegance
The 58-story Austonian in Austin, Texas, is the tallest residential building in the western U.S. Benchmark Development, along with Ziegler Cooper Architects and Balfour Beatty (GC), created the 850,000-sf tower with 178 residences, retail space, a 6,000-sf fitness center, and a 10th-floor outdoor area with a 75-foot saltwater lap pool and spa, private cabanas, outdoor kitchens, and pet exercise and grooming areas.
| Dec 17, 2010
Sam Houston State arts programs expand into new performance center
Theater, music, and dance programs at Sam Houston State University have a new venue in the 101,945-sf, $38.5 million James and Nancy Gaertner Performing Arts Center. WHR Architects, Houston, designed the new center to connect two existing buildings at the Huntsville, Texas, campus.
| Dec 17, 2010
Alaskan village school gets a new home
Ayagina’ar Elitnaurvik, a new K-12 school serving the Lower Kuskikwim School District, is now open in Kongiganak, a remote Alaskan village of less than 400 residents. The 34,000-sf, 12-classroom facility replaces one that was threatened by river erosion.
