Realtors see increase in commercial income and sales volume for second straight year
Commercial real estate markets
Corresponding to tightened inventory
conditions, sales transactions for
NAR’s commercial members have
slowly decreased in the last two
years, down from eight in 2016 to
seven in 2017.
The annual study’s results
represent Realtors, members of NAR,
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14 West Hawaii Real Estate | December 7, 2018
are on the rise, with Realtors
specializing in commercial
real estate reporting both an
increase in members’ gross income
and sales volume, according to the
National Association of Realtors
2018 Commercial Member Profile.
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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 commercial real
estate industry is strong and
is on pace with the growing
economy. Although there is a
slight decrease in transactions,
commercial professionals
have reported improvements
in their markets and business
activity for consecutive years.
Realtors reported that sales
volume and costs of sales
increased this year, as well as
median gross annual income,”
said NAR President John Smaby, a
second-generation Realtor from Edina,
Minnesota and broker at Edina Realty.
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 $3,870,500, an
increase from the median sales
volume of $3,500,000 in 2016. 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.
“Commercial real estate
professionals are reporting great
growth in the past year, which
has convinced more and more
members to enter the commercial
industry. The economy is expanding
along with tight labor market have
boosted income for Realtors® in the
commercial space,” said NAR Chief
Economist Lawrence Yun.
Fifty-one percent of NAR’s
commercial members worked in
sales as their primary service area,
followed by 16 percent in leasing and
12 percent in investment. Twentynine
percent of NAR’s commercial
members worked with commercial
buildings, with 13 percent on
multifamily structures, retail, and office
space. Forty-nine percent of NAR’s
commercial members were brokers,
29 percent licensed sales agents, 17
percent broker associates, and five
percent were appraisers.
The median age of commercial
members remained the same as
last year, 60, while the median
age for NAR’s commercial
members with two years of
experience or less was 46.
Thirty percent were female, up
from 27 percent in 2017 and 70
percent were male, down from
73 percent in 2017. Seventyeight
percent of commercial
members worked at least 40
hours a week.
In August 2018, NAR
invited a random sample of
Realtors® with an interest in
commercial real estate to fill
complete an on-line survey.
A total of 2,324 responses
were received for an overall
response rate of 3.8 percent.
The confidence interval at a
95 percent level of confidence
is +/-2.0 percent based on the
share of commercial members.
All information in this report
is representative of member
characteristics in 2018, while
sales, lease transaction values,
and income are characteristic of
the 2017 calendar year.
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