Realtors® Report Increase in Commercial Transactions, Income and Sales Volume
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.
“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.
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.
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.
Excerpted from National Association of Realtors® press release
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