Monday
September 15, 2014

Commercial Market Sees Rising Incomes, Transactions

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Commercial Market Sees Rising Incomes, Transactions

Despite challenges in the market, commercial real estate practitioners report an increase in sales transaction volume and the highest gross annual incomes since 2008, according to the 2014 National Association of REALTORS® Commercial Member Profile, based on a survey of 2,213 members.

Commercial REALTORS® saw an increase in median sales transaction volume to nearly $2.6 million in 2013, up by nearly $50,000 from 2012, according to the report.

The report also found that:

  • The median annual gross income in 2013 for commercial practitioners was $96,200, an increase from $90,200 in 2012. It is the highest reported level since 2008, and also marks the fourth year in a row for increases to annual gross incomes.
  • Commercial practitioners completed a median of eight transactions in 2013.
  • 76% of commercial practitioners reported having a leasing transaction. Their median transaction leasing volume last year was $431,600.
  • 29% cited investment sales as their primary business commercial specialty, which was the most popular area of concentration, followed by land sales and office leasing.
  • 28% of commercial practitioners reported being involved in international transactions in 2013. Sixteen percent noted an increase in international transactions.
  • The typical commercial REALTOR® has been in real estate for 25 years and in commercial real estate for 15 years. About 70,000 commercial real estate professionals are members of NAR.

“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.” 

Source: National Association of REALTORS®

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