(Washington, DC – Insurance News and Markets) – Although the average yearly income and amount of sales for National Association of Realtors (NAR) commercial members fell in 2015, the organization saw a significant increase in the number of new commercial members who joined the organizations.
The number of commercial members with less than two years of experience nearly doubled to 9 percent in 2016, from 5 percent in 2015. 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.
“As the U.S. economy continues to experience strong, steady recovery, NAR has seen more and more members choose to specialize in commercial real estate,” said NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida. “Realtors who practice commercial real estate help build and improve the economies of our local communities, so as a community’s commercial real estate market grows and improves so does the local economy.”
The median years of experience in real estate dropped to 15 years in 2016 from 20 years in 2015, as did the median years of experience in commercial real estate, down from 25 years to 20 years. The median gross annual income for commercial members in 2015 was $108,800, down from $126,900 in 2014. Those with less than two years of experience reported a median annual income of $43,400 in 2015, down from $67,200 in 2014; and those with more than 26 years of experience reported a median annual income of $165,385 in 2015, up from $162,800 in 2014.
“The slight drop in annual income appears to be associated with a substantial number of new commercial members entering the industry,” said Lawrence Yun, NAR chief economist. “The report tells us that the more years of experience in commercial real estate a member has the more revenue they take in.”
The increase in new commercial members has been predominately new sales agents and as a result led to a shift in license type. Forty-seven percent of NAR’s members who practice commercial real estate are brokers, down from 59 percent last year, while licensed sales agents made up 31 percent of commercial members, up from 24 percent. Additionally, 17 percent of commercial members have a broker-associate license and 5 percent hold an appraisal license.
The median lease transaction volume in 2015 among members who reported at least one transaction was $600,000. While those members who manage properties typically managed 50,000 total square feet representing 17 total spaces in 2016, down from 75,000 square feet and 20 spaces managed in 2015. Those who manage offices typically manage 20,000 square feet representing five total spaces.
Seventy-three percent of commercial members are male, down from 75 percent in 2014, as more women continue to enter the industry. The median age remained the same as last year at 60 years old. Sixty-nine percent of members have a bachelors’ degree or higher.
Source: National Association of REALTORS.