Commercial Specialization Swells Up!
Annual income and number of sales transactions of NAR commercial real estate members decreased slightly as the number of new commercial members increased significantly in 2015, according to the 2016 NAR Commercial Member Profile. The annual study focuses on REALTORS® 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.
SURVEY Highlights:
- The number of commercial members with less than two years of experience nearly doubled to 9 percent in 2016, from 5 percent in 2015.
- The median years of experience in real estate dropped to 15 years in 2016 from 20 years in 2015, as did the median years of experience in commercial real estate, down from 25 years to 20 years.
- The median gross annual income for commercial members in 2015 was $108,800, down from $126,900 in 2014. Brokers and appraisers reported the highest annual gross income at $145,800 and $130,800 respectively while sales agents reported the lowest at $$67,300, which is in line with last year’s results. Those with less than two years of experience reported a median annual income of $43,400 in 2015, down from $67,200 in 2014; and those with more than 26 years of experience reported a median annual income of $165,385 in 2015, up from $162,800 in 2014.
- The increase in new commercial members has been predominately new sales agents. Forty-seven percent of NAR’s members who practice commercial real estate are brokers, down from 59 percent last year, while licensed sales agents made up 31 percent of commercial members, up from 24 percent.
- The median sales transaction volume among commercial members who had a transaction was $2,931,000 in 2015, an increase from $2,916,700 in 2014. Eight percent of commercial members reported not having a transaction at all, likely due to the influx of new members in commercial real estate.
Source: National Association of REALTORS®