It’s a good time to be in commercial real estate. REALTORS® specializing in commercial real estate are reporting an increase in gross income and sales volume, according to the 2018 Commercial Member Profile, published by the National Association of REALTORS®.
The median gross annual income for commercial members reached an all-time high of $150,700 in 2017, up from $120,900 in 2016.
“The commercial real estate industry is strong and is on pace with the growing economy,” says 2019 NAR President John Smaby. “REALTORS® reported that sales volume and costs of sales increased this year, as well as median gross annual income.”
The median sales transaction volume in 2017 was $3,870,500—an increase from $3,500,000 in 2016. The median dollar value of sales has also steadily risen to a new peak of $602,500 for all commercial members in 2017—up from $543,500 in 2016, the report showed.
However, real estate pros did see fewer sales transactions last year. They attributed the slowdown to the tight number of inventories plaguing many markets.
“Commercial real estate professionals are reporting great growth in the past year, which has convinced more and more members to enter the commercial industry,” says NAR’s Chief Economist Lawrence Yun. “The economy expanding, along with a tight labor market, have boosted income for REALTORS® in the commercial space.”
Brokers and brokers’ associates reported the highest annual gross income of $186,900 and $139,700, respectively. 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, an increase from $31,500 in 2016. Commercial members with more than 26 years of experience reported a median annual income of $192,600 in 2017, an increase from $162,200 in 2016.
The study reflects responses from more than 2,000 REALTORS® who work in commercial sales, leasing, brokerage and development for land, office and industrial space, multifamily and retail buildings, and property management.
