“Commercial real estate professionals are reporting great growth in the past year, which has convinced more and more members to enter the commercial industry.”
Commercial real estate realtors that are members of National Association of Realtors reported both an increase in gross income and sales volume last year, according to the association’s 2018 Commercial Member Profile. The annual study looks at the realtors who are members of NAR and 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.
The top line finding of the report: 2017 was a good year for the community. “Commercial real estate professionals are reporting great growth in the past year, which has convinced more and more members to enter the commercial industry,” said NAR Chief Economist Lawrence Yun.
It found that the median gross annual income for commercial members hit an all-time high of $150,700 in 2017, up from $120,900 in 2016.
The median sales transaction volume in 2017, among members who had a transaction was $3.87 million an increase from the median sales volume of $3.5 million in 2016. NAR also reports that the median dollar value of sales has also steadily risen since 2013 to its peak of $602,500 for all commercial members in 2017, up from $543,500 in 2016.
The median gross leasing volume was $705,500 in 2017 for members who had a transaction, an increase from $538,500 in 2016.
Brokers and brokers’ associates reported the highest annual gross income of $186,900 and $139,700, respectively, while sales agents reported $104,600, an increase from $81,300.
Commercial members with less than two years of experience reported a median annual income of $44,000 in 2017, up from $31,500 in 2016; and those with more than 26 years of experience reported a median annual income of $192,600 in 2017, up from $162,200 in 2016.
The report also noted that transactions had slightly declined for the year — commercial members completed a median of seven transactions in 2017, down from eight in 2016.
By: Erika Morphy (GlobeSt)
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