NAR commercial report finds optimism
WASHINGTON – May 7, 2014 – Realtors® who practice commercial real estate reported an increase in sales transaction volume and medium gross annual income last year, according to the 2014 National Association of Realtors Commercial Member Profile.
The survey shows that even with challenges in the market, commercial members saw a rise in median sales transaction volume to $2,554,700 – up nearly $50,000 from 2012.
"Despite a government shutdown, regulatory changes and a budget sequestration, ongoing job creation has helped the commercial market make continued progress," says NAR President Steve Brown. "A stronger commercial market is a good indicator of a recovering and growing economy."
NAR commercial members who were surveyed 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.
NAR commercial members surveyed completed a median of eight transactions in 2013, equal to the previous year. Nine percent of commercial members reported not having a transaction in 2013, also the same as 2012. Brokers typically had a greater sales transaction volume than sales agents.
Seventy-six percent of commercial members reported having a leasing transaction, and the median transaction leasing volume in 2013 was $431,600.
Twenty-nine percent of members cited investment sales as their primary business specialty, making it the most popular area of concentration. Land sales and office leasing were second and third most popular primary specialties.
Realtors reported an increase in annual gross income for the fourth year in a row. The median for 2013 was $96,200, an increase from $90,200 in 2012 and the highest reported level since 2008.
Commercial members who manage properties typically managed 60,000 total square feet and twenty total spaces. Those who manage offices typically managed 25,000 total office square feet and eight total offices.
Twenty-eight percent of commercial members were involved in international transactions in 2013. Sixteen percent of commercial members reported an international increase, while 1 percent had a decrease. Nearly one-fourth of commercial members say international business is important to their company.
The typical commercial NAR member has been in real estate for 25 years, in commercial real estate for 15 years and been a member of NAR for 18 years. Eighty percent of members reported working at least 40 hours a week, with about half stating that they spend 75 to 100 percent of their time on commercial real estate activity.
Commercial members are predominately male with a median age of 59. However, women are slowly becoming a stronger presence in the industry: 35 percent of those with two or fewer years' experience are female, up from 33 percent last year, and sales agents have the largest representation of female practitioners with 29 percent.
The 2014 NAR Commercial Member Profile was based on a survey of 2,213 members. Income and transaction data are for 2013, while other data represent member characteristics in 2014. Approximately 70,000 commercial real estate professionals are members of NAR.
NAR's 2014 Commercial Member Profile is available online (password protected).
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