NAR: Commercial Realtors report increase in transactions, income, sales volume

by Brianna Crandall — June 24, 2015—Commercial real estate markets are improving, with Realtors specializing in commercial real estate reporting an increase in annual gross income, the number of sales transactions, and sales volume, according to the 2015 National Association of Realtors Commercial Member Profile. The annual study’s results represent Realtors, members of NAR, who conduct all or part of their business in commercial sales, leasing, brokerage and development for land, office and industrial space, multifamily and retail buildings, as well as property management.


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The profile shows the median gross annual income of commercial members, which has increased steadily for the past five years, was $126,900 in 2014, an increase from $96,200 in 2013. Appraisers and brokers reported the highest annual gross income, while sales agents, often newest to the field, reported the lowest. A full 67% of Realtors who specialize in commercial real estate (CRE) reported they derived 50% or more of their income from commercial real estate in 2014.

Commercial members completed a median of 11 sales transactions in 2014, up from last year’s median of eight. Only 6% reported no sales transactions, down from 9% in 2013. The 2014 median sales transaction volume for members who had sales transactions was $2,916,700—a significant increase from $2,554,700 in 2013, points out NAR.

More than half (59%) of commercial members are brokers. Licensed sales agents, at 24%, represent the next largest segment. A majority of commercial members reported working for a local firm, and 82% reported working at least 40 hours a week.

A third (32%) of commercial members were involved in international transactions in 2014. Of those, 18% saw an increase in international clients and only 1% had a decrease. Broker associates had the most experience with foreign clients, with 43% reporting an international transaction.

A full 83% of commercial members reported having a leasing transaction. The median transaction leasing volume for members who reported at least one transaction was $500,000 in 2014—a more than 15% increase from 2013. The median dollar value for leasing transactions is heavily influenced by the member’s experience level, says NAR.

Commercial members who manage properties typically managed 75,000 total square feet in 2014, which represents 20 total spaces. Those who manage offices typically managed 25,000 total square feet, representing eight total offices.

Of the 1,982 members surveyed, the typical commercial member has been in real estate for 25 years and in commercial real estate (and a member of NAR) for 20 years. Additionally, 45% of commercial members are also affiliated with one of several commercial organizations including the CCIM Institute, the Institute of Real Estate Management, the Counselors of Real Estate, the Realtors Land Institute, and the Society of Industrial and Office Realtors.

Commercial members are predominately male with a median age of 60. However, more women continue to enter the profession, as 51% of those with two years or less experience are female. Nearly three-quarters (70%) of Realtors who specialize in commercial real estate have an education level of a bachelor’s degree or higher.