Latest report from National Association of Realtors NAR) tells us that commercial property market trends are showing encouraging results for 2013 with sales volume increasing compared to last year. For 2012, annual gross income was $90,200 surpassing the figure of $86,000 for 2011. In fact, it is the highest since 2008. Evaluators and brokers recorded the maximum gross income while it was the lowest for sales agents. An increased gross income for the third year in succession indicates market is recovering. NAR represents about one million members that handle every aspect of commercial and real estate industry in the US.
The results of study represent realtors involved in commercial real estate. NAR members are occupied with various activities including commercial sales, brokerage, land development for industrial and commercial purposes, leasing, property management and retail and multifamily building.
NAR President Gary Thomas remarked, “Commercial market is presenting a sign of improvement as reflected by the healthier trends of transactions, volume of sales and income as reported by our members.” He commented that realtors practicing in commercial real estate help building communities by making investments possible and propping lease and sale of commercial areas. He was sure that positive changes in commercial property market trends will assist stimulating economic recovery for the country.
In 2012, average no of transactions of commercial members rose to eight. Average sales volume also went up to $2,507,700, showing an improvement over last year. In general, volumes of sales transaction of brokers were higher than agents. The average value of all sales deals stood at $433,600 whereas the average area was 10, 400 square feet.
Quite like average sales volume, this year, the average of lease dealings also went up by $70,000. The average of lease deals in 2012 was $476,400, with 21% of commercial members not recording any lease transaction. The average value of lease transactions was recorded at$169,100 while average area was 4200 square feet.
Commercial members managing properties on average managed 40,000 square feet, equivalent of 15 spaces and 16,000 square feet of office space, equivalent of six offices.
63% of commercial members informed having made more than 50% of their yearly income through real estate industry. In 2012, 30% members didn’t get any income from commercial real estate leasing. Just 30% collected at least 50% of their income from leasing property. Most of commercial members (85%) made some minimum profit from commercial real estate investments.
So, that was the data indicating that commercial property market trends are changing for the better.
Now, here’s more information about NAR data:
Percentage of commercial members: 60
Percentage of sales agents : 25
Average age of commercial member: 59 years
Average number of years in business: 25 years
Average length of membership with NAR: 17 years
Majority of commercial members reportedly work in local firms while 58% operate from offices having a combination of residential and commercial agents and brokers.
Though NAR at present is dominated by male members, women are also gradually entering this field. 33% of members having two or fewer years of experience are women.
The above data was possible as a result of a survey of 1,796 commercial practitioners.