New NAR Commercial Numbers: Transactions, Income Up In 2011 For REALTORS®
It’s official. 2011 was better for NAR Commercial member practitioners.
REALTORS® who spend some or all of their activity in leasing, commercial sales, brokerage, industrial space, land development, office space, multifamily, retail and property management answered the NAR’s 2011 Commercial Member Profile survey, reporting a rise in their median gross income as well as an increase in transactions.
Five Becomes Seven
How many transactions and in what kind of patterns? The survey says REALTORS® a median of seven transactions in 2011, up from 2009 and 2010 when the typical agent had five transactions. The survey further found a large majority of commercial members work at least 40 hours a week. More than half reported they spend 75 – 100 percent of their time on commercial real estate activity. Sixty-four percent derived 50 percent or more of their income from commercial real estate activity in 2011.
Details About Deals
According to the survey, 2011’s median sales transaction volume (including those members without transactions) was $1,058,300. When those members who had no transactions were excluded, the median transaction volume was $2,010,500. Brokers typically had higher sales transaction volumes than agents, and 22 percent of commercial members had no transactions with sales volume. The median dollar value of sales transactions was $414,300 and the median square footage was 9,600. In both instances, brokers typically had higher median dollar value of sales transactions, as well as sold larger spaces when compared to sales agents.
A Long, Hard Road
“The commercial real estate market still has a long way to go before full recovery, yet Realtors® are reporting positive trends that give us hope that the market is on its way to becoming healthy again,” said NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami. “Realtors® who practice commercial real estate help build communities by facilitating investment and promoting the sale and lease of commercial space, which supports millions of jobs nationwide. They are hopeful that the market will strengthen and their business will help spur the nation’s economic recovery.”