Archives for June 2015

Click here to view source video.
WASHINGTON (June 15, 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.
“After years of slow recovery, the commercial real estate market has shown meaningful growth and our members have seen significant improvements in their business activity,” said NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark. “Realtors® who practice commercial real estate help build and revitalize communities by facilitating investment in commercial properties that support millions of jobs nationwide. There is every indication that continued improvement to commercial markets with help stimulate economic growth for the rest of the country.”
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. Sixty-seven percent of Realtors® who specialize in commercial real estate reported they derived 50 percent 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. Six percent reported no sales transactions, down from 9 percent in 2013. The 2014 median sales transaction volume for members who had a Sales transaction was $2,916,700 – a significant increase from $2,554,700 in 2013.
Fifty-nine percent of commercial members are brokers. Licensed sales agents, at 24 percent, represented the next largest segment. A majority of commercial members reported working for a local firm, and 82 percent reported working at least 40 hours a week.
Thirty-two percent of commercial members were involved in international transactions in 2014. Eighteen percent saw an increase in international clients and only 1 percent had a decrease. Broker associates had the most experience with foreign clients with 43 percent reporting an international transaction.
Eighty-three percent 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 percent increase from 2013. The median dollar value for leasing transactions is heavily influenced by the member’s experience level.
“When it comes to leasing transactions, the report tells us that the more years of experience an agent or broker has the more high value transactions in which they are involved,” said Lawrence Yun, NAR chief economist. “The broad improving leasing trend will continue this year and next because of rising occupancy rates across all commercial property types.”
Commercial members who manage properties typically managed 75,000 total square feet, which represents 20 total spaces. Those who manage offices typically managed 25,000 total square feet, representing eight total offices.
The typical commercial member has been in real estate for 25 years and in commercial real estate for 20 years. The median length of membership in NAR is also 20 years. Additionally, 45 percent 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 percent of those with two years or less experience are female Seventy percent of Realtors® who specialize in commercial real estate have an education level of a bachelors’ degree or higher. Seventy-eight percent of commercial Realtors® are married, with 13 percent being divorced, and five percent being single and never married.
The 2015 NAR Commercial Member Profile was based on a survey of 1,982 members. Income and transaction data are for 2014, while other data represent member characteristics in 2015. Approximately 350,000 commercial real estate professionals are members of NAR, making it the largest commercial organization in the industry.
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.
By: National Association of REALTORS®
Click here to view source article.
 

Commercial Member Profile 2015
Highlights
The 2015 NATIONAL ASSOCIATION OF REALTORS® Commercial Member Profile details the business and demographic characteristics of NAR commercial members. Commercial members have expertise in the field of commercial real estate and have experience working in many property types.
BUSINESS CHARACTERISTICS OF NAR COMMERCIAL MEMBERS

• Fifty-nine percent of commercial members reported having a broker license and 24 percent reported having a sales agent license.
• Forty-five percent of respondents are members of any of several commercial affiliated institutes, councils or societies.
• There is a wide variety of commercial member specialty areas in commercial real estate. Additionally, many members practice a secondary specialty area.
• Commercial members typically have been in real estate 25 years, in commercial real estate 20 years, and members of NAR for 20 years.

BUSINESS ACTIVITIES OF NAR COMMERCIAL MEMBERS

• Commercial members completed a median of eleven transactions in 2014.
• The median sales transaction volume of 2014 for members who had a transaction was $2,916,7000 – an increase from $2,554,700 in 2013.
• The median gross annual income of commercial members was $126,900 in 2014, an increase from $96,200 in 2013. The median gross annual income of commercial members has increased steadily for the past five years.
• Eighty-two percent of commercial members work at least 40 hours per week.
• Sixty-seven percent of commercial members of NAR dervied 50 percent or more of their income from all commercial real estate in 2014.
• Fifty-two percent of members work for a local commercial real estate firm.

DEMOGRAPHIC CHARACTERISTICS OF NAR COMMERCIAL MEMBERS

• The median age of commercial members is 60-years-old.
• Seventy-five percent of the practioners are male.
• Seventy percent of commercial members have a bachelors’ degree or highter.
• Seventy-eight percent of commercial members are married.

Click here to continue reading on PDF.
By: National Association of REALTORS®
Click here to view source PDF.
Click here to view source article.

(Click photo to enlarge) The Platinum development in East Nob Hill is one example of new multifamily construction targeting some of Albuquerque’s millennial demographic.

Leaders in Albuquerque’s public and private sectors have spent a lot of time talking about millennials in recent years. How to keep them. How to attract them.

Recent reports show that the Duke City has been losing some of its influential 18-to-34-year-old residents. Many have moved to more millennial-friendly cities like Denver and Austin.

But a Bloomberg report says the Albuquerque metro area is faring a little better than some might think in retaining millennials — especially compared to some other metro areas.

The “Second-Tier Cities: A Millennial Migration” report published last week looked at millennial population changes between 2000 and 2013. Albuquerque came in at No. 11 on a list of 20 metros that have made the greatest gains in adding the demographic — defined in the report as 20-to-34-year-olds.

The report said the Albuquerque area increased its millennial population by 23.7 percent — from 171,400 millennials in 2000 to 212,040 in 2013. The Duke City beat out other popular millennial metros, including Nashville, Phoenix and Washington, D.C.

Another metric the Bloomberg report looked at was the number of patents granted in millennial-heavy metro areas. The report says the number of patents granted in a city hints at future job growth in the tech industry, which could impact the city’s housing market. Albuquerque was listed at No. 14 out of 25 metro areas — with 3,240 patents granted from 2000 to 2013.

Meanwhile, the report said cites with an increase in millennials saw more multifamily housing being built. Cash-strapped millennials want reasonable rents, which is why they often turn to apartments, the report said.

Bloomberg looked at the number of multifamily permits pulled between 2010 and 2013. Albuquerque experienced a 445 percent increase — making it No. 4 on a list of 20 metro areas. And it’s true, Albuquerque has seen a slew of new apartment projects popping up across the city, both privately funded and partially subsidized.

Read the full report here.

By: Stephanie Guzman (Albuquerque Business First)

Click here to view source article.

NAR member Deena Zimmerman joined the show to talk about the ins and outs of tenant representation. At the time of taping, Deena was a Senior Associate at Jameson Commercial, where she specialized in finding high quality sites throughout Chicagoland and surrounding areas for national operators, franchisees, and first-time entrepreneurs. She recently joined Sperry Van Ness Chicago Commercial as Vice President.
Deena is an award winning broker who has worked in the industry since 2004. She’s had a focus in tenant representation and specializes in finding high quality sites throughout Chicagoland and the surrounding areas for national operators, franchisees and first-time entrepreneurs.
Click here to listen to podcast.
By: National Association of REALTORS®
Click here to view source article.