Lot Lines: NAR commercial membership jumps

The median annual income and number of sales transactions of National Association of Realtors commercial members decreased slightly as the number of new members significantly increased in 2015, according to the 2016 NAR Commercial Member Profile.

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.

The median annual income and number of sales transactions of National Association of Realtors commercial members decreased slightly as the number of new commercial members significantly increased in 2015, according to the 2016 NAR Commercial Member Profile.

“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. Brokers and appraisers reported the highest annual gross income at $145,800 and $130,800 respectively while sales agents reported the lowest at $$67,300, which is in line with last year’s results. 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.”