Real estate agents in the commercial sector are benefiting from a substantial increase in gross income and sales volume, according to new data from the National Association of Realtors.
The NAR’s latest 2018 Commercial Member Profile shows that the median gross annual income for members hit $150,000 in 2017, up from $120,999 the year before. The figure is a new all-time high, the NAR said.
“The commercial real estate industry is strong and is on pace with the growing economy,” said 2019 NAR President John Smaby in a statement. “Realtors reported that sales volume and costs of sales increased this year, as well as median gross annual income.”
The NAR added that 2017’s median sales transaction volume rose to $3.87 million, up from $3.5 million the year before. In addition, the median dollar value of sales has also grown, rising to a new record of $602,500 for all members in 2017, from $543,500 the year before.
Things weren’t entirely rosy however, as there were fewer commercial sales transactions in the last year. The NAR said the slowdown was due to tight inventory in 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,” said NAR Chief Economist Lawrence Yun. “The economy expanding, along with a tight labor market, has boosted income for realtors in the commercial space.”
The highest annual gross income was reported by brokers and broker’s associates, at $186,900 and $139,700, respectively. Meanwhile, sales agents pulled in an average income of $104,600 in 2017, up from $81,300 the year before.
Experience does matter, however. The NAR said that commercial members with 26-plus years of experience reported median annual incomes of $192,000, up from $162,200 in 2016. Those with less than two years of experience made just $44,000 on average, up from $31,500 the year before.