National Association of REALTORS速
Commercial Member Profile 2014
2014 Officers President Steve Brown, ABR, CIPS, CRS, GREEN President-Elect Chris Polychron, CRS, GRI First Vice President Tom Salomone Treasurer Michael McGrew, CRB, CRS
Immediate Past President Gary Thomas Vice President Beth L. Peerce Vice President JoAnne Poole, GRI, CRS Chief Executive Officer Dale Stinton, CAE, CPA, CMA, RCE
NAR Commercial Leadership 2014 Commercial Liaison Linda St. Peter, AHWD, CCIM 2014 Commercial Committee Chair Leil Koch, CCIM, CIPS, CPM, CRB Senior Vice President, Commercial & Global Services Janet Branton, CAE, CIPS Vice President, Commercial & Global Services Jan M. Hope, RCE
2014 NAR Commercial Member Profile
NAR RESEARCH STAFF Office of the Chief Economist Lawrence Yun, Ph.D. Chief Economist and Senior Vice President Caroline Van Hollen Senior Research and Strategic Planning Coordinator Survey and Market Research Paul C. Bishop, Ph.D. Vice President Stephanie Davis Administrative Coordinator Nadia Evangelou Research Economist Ken Fears Director, Regional Economics and Housing Finance Danielle Hale Director of Housing Statistics Jessica Lautz Director, Member and Consumer Survey Research
2014 NAR Commercial Member Profile
NAR RESEARCH STAFF Quantitative Research Jed Smith, Ph.D. Managing Director, Quantitative Research Scholastica Cororaton Research Economist Michael Hyman Research Assistant George Ratiu Director, Quantitative and Commercial Research Hua Zhong Data Analyst Business Operations and Communications Thomas Doyle Director of Research Marketing and Communications Meredith Dunn Research Communications Representative
2014 NAR Commercial Member Profile
Highlights Commercial members of NAR have expertise in a wide variety of transactions across many property types. The 2014 NATIONAL ASSOCIATION OF REALTORS® Commercial Member Profile describes the business, demographic and information needs of these members. BUSINESS CHARACTERISTICS OF NAR COMMERCIAL MEMBERS • Fifty-eight percent of commercial members reported having a broker license and 26 percent reported having a sales agent license. • Thirty-four percent of respondents are members of any of several commercial affiliated institutes, councils or societies. • Investment sales are the most cited primary specialty of commercial members and is the top ranked secondary specialty area. Land sales are the second most common primary and secondary specialty area. • Commercial members typically have been in real estate 25 years, in commercial real estate 15 years, and members of NAR 18 years. BUSINESS ACTIVITIES OF NAR COMMERCIAL MEMBERS • Commercial members completed a median of eight transactions in 2013. • The median sales transaction volume in 2013 for members who had a transaction was $2,554,700—an increase from $2,507,700 in 2012. • The median gross leasing volume was $431,600 in 2013—a decrease from the $476,400 in 2012. BUSINESS REVENUE AND FIRM AFFLIATION • The median gross annual income of commercial members was $96,200 in 2013, an increase from $90,200 in 2012. The median gross annual income of commercial members has increased for the past four years. • Eighty percent of commercial members work at least 40 hours a week. • Sixty-two percent of commercial members of NAR derived 50 percent or more of their income from all commercial real estate in 2013. • Fifty-seven percent of members work for a local commercial real estate firm. DEMOGRAPHIC CHARCTERISTICS OF NAR COMMERCIAL MEMBERS • The median age of commercial members is 59-years-old. • Seventy-seven percent of the practitioners are male. • Sixty-four percent of commercial members have a bachelors’ degree or higher. 2014 NAR Commercial Member Profile
Chapter 1 Fifty-eight percent of NAR’s commercial members are brokers, with licensed sales agents the next largest segment of membership at 26 percent. Twenty percent of commercial members have a broker associate license while appraisal license holders accounted for 6 percent. There are five commercial organizations affiliated with the NATIONAL ASSOCIATION OF REALTORS®. They are the CCIM Institute, the Institute of Real Estate Management (IREM), the Society of Industrial and Office REALTORS® (SIOR), the REALTORS® Land Institute and the Counselors of Real Estate (CRE). Sixty-four percent of commercial members reported not being affiliated with any of the groups. Investment sales were identified by the highest proportion of members as their primary business specialty at 29 percent. The areas of land sales and office leasing were the next most frequently mentioned primary commercial real estate specialties. Commercial members cite investment sales and retail leasing most frequently as their secondary business specialty. Land sales and retail leasing were next most frequently mentioned as secondary specialty areas. Commercial members of NAR have a wealth of experience, with the typical practitioner in the commercial side of the business for 15 years. The typical commercial member has been involved in real estate in any capacity for 25 years. The median length of membership in NAR among commercial members is 18 years. Brokers and appraisers tend to have the most experience while sales agents tend to be the newest to the business. There are several national and international associations that cater to commercial real estate professionals. Thirty-four percent of members belong to the International Council of Shopping Centers (ICSC). An additional 11 percent of commercial members belong to The Appraisal Institute and 9 percent to The Urban Land Institute (ULI). Commercial members use a wide variety of information sources when conducting their day-to-day business. Some sources are more popular than others due to cost, accessibility, timeliness and the quality of the data. Seventy-seven percent of members use LoopNet, a California-based online listing service. 2014 NAR Commercial Member Profile
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-1 Exhibit 1-2 Exhibit 1-3 Exhibit 1-4 Exhibit 1-5 Exhibit 1-6 Exhibit 1-7 Exhibit 1-8 Exhibit 1-9 Exhibit 1-10 Exhibit 1-11 Exhibit 1-12 Exhibit 1-13 Exhibit 1-14 Exhibit 1-15 Exhibit 1-16 Exhibit 1-17 Exhibit 1-18
NAR'S COMMERCIAL MEMBERS BY TYPE OF LICENSE NAR COMMERCIAL MEMBERS' LICENSE TYPE BY EXPERIENCE NAR COMMERCIAL MEMBERS' LICENSE TYPE BY GENDER NAR COMMERCIAL MEMBERS' LICENSE TYPE BY MEMBERSHIP IN NAR AFFILIATES MEMBERSHIP IN NAR AFFILIATES MEMBERSHIP IN NAR AFFILIATES, BY COMMERCIAL REAL ESTATE EXPERIENCE PRIMARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS PRIMARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS BY LICENSE TYPE PRIMARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS BY GENDER SECONDARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS REAL ESTATE EXPERIENCE OF NAR'S COMMERCIAL MEMBERS BY LICENSE TYPE NAR COMMERCIAL MEMBERS' YEARS OF EXPERIENCE AS COMMERCIAL AGENTS OR BROKERS BY LICENSE TYPE NAR COMMERCIAL MEMBERS' YEARS OF EXPERIENCE AS COMMERCIAL AGENTS OR BROKERS BY MEMBERSHIP IN NAR AFFILIATES REAL ESTATE AND COMMERCIAL REAL ESTATE EXPERIENCES OF NAR'S COMMERCIAL MEMBERS, BY GENDER LENGTH OF MEMBERSHIP IN NATIONAL ASSOCIATION OF REALTORS速 BY LICENSE TYPE LENGTH OF MEMBERSHIP IN NATIONAL ASSOCIATION OF REALTORS速 BY MEMBERSHIP IN NAR AFFILIATES MEMBERSHIP IN OTHER NATIONAL/INTERNATIONAL ASSOCIATIONS INFORMATION SOURCES NAR'S COMMERCIAL MEMBERS USE MOST
2014 NAR Commercial Member Profile
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-1 NAR'S COMMERCIAL MEMBERS BY TYPE OF LICENSE (Percentage Distribution)
Broker Broker Associate Sales Agent Appraisal
58% 20% 26% 6%
NAR'S COMMERCIAL MEMBERS BY TYPE OF LICENSE (Percentage
70% 60%
58%
50% 40%
26%
30% 20%
20% 10%
6%
0% Broker
Broker Associate
2014 NAR Commercial Member Profile
Sales Agent
Appraisal
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-2 NAR COMMERCIAL MEMBERS' LICENSE TYPE BY EXPERIENCE (Percentage Distribution)
Broker Broker Associate Sales Agent Appraisal
All Commercial Members 58% 20 26 6
Real Estate Experience 2 years 6 to 15 16 to 25 or less 3 to 5 years years years 8% * 92 *
22% 11 67 *
46% 18 41 2
* Less than one percent
2014 NAR Commercial Member Profile
59% 22 23 5
26 years or more 69% 21 14 9
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-3 NAR COMMERCIAL MEMBERS' LICENSE TYPE BY GENDER (Percentage Distribution)
Broker Broker Associate Sales Agent Appraisal
All Commercial Members 58% 20 26 6
Male 52% 19 22 6
Gender Female 46% 20 31 3
2014 NAR Commercial Member Profile
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-4 NAR COMMERCIAL MEMBERS' LICENSE TYPE BY MEMBERSHIP IN NAR AFFILIATES (Percentage Distribution) Membership in NAR Affiliates (Designee or Candidate) Society of Certified Accredited Certified Industrial Institute of Commercial All Counselors of Land International and Office Real Estate Investment Not a Commercial Real Estate Consultant Property REALTORS速 Management Member (CCIM member of Members (CRE) (RLI) (CIPS) (SIOR) (IREM) Institute) any affiliate Broker Broker Associate Sales Agent Appraisal Total Responding
58% 20 26 6 1,768
67% 24 10 24 21
70% 20 19 5 59
53% 14 34 3 64
77% 15 15 3 65
2014 NAR Commercial Member Profile
75% 11 16 3 99
68% 20 18 4 428
53% 21 29 6 1,109
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-5 MEMBERSHIP IN NAR AFFILIATES (Percent of Respondents)
Not a member of any affiliate Certified Commercial Investment Member (CCIM Institute) Institute of Real Estate Management (IREM) Certified International Property (CIPS) Society of Industrial and Office REALTORS速 (SIOR) Accredited Land Consultant (ALC) Counselors of Real Estate (CRE)
2014 66% 25
2013 63% 27
2012 60% 29
2011 65% 25
2010 61% 27
2009
2007
54% 34
57% 31
6
5
7
7
6
8
7
4
6
3
2
3
2
2
4
4
5
4
6
6
6
4 1
4 2
3 2
2 2
3 2
3 3
3 3
2014 NAR Commercial Member Profile
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-6 MEMBERSHIP IN NAR AFFILIATES, BY COMMERCIAL REAL ESTATE EXPERIENCE (Percent of Respondents) Experience as a Commercial Real Estate Agent or Broker All Commercial 2 years 3 to 5 6 to 15 16 to 25 26 years Members or less years years years or more Not a member of any affiliate Certified Commercial Investment Member (CCIM Institute) Institute of Real Estate Management (IREM) Certified International Property (CIPS) Society of Industrial and Office REALTORS速 (SIOR) Accredited Land Consultant (ALC) Counselors of Real Estate (CRE)
66% 25
92% 4
81% 14
73% 19
62% 30
61% 28
6
4
*
4
5
8
4
4
5
5
3
4
4
*
*
2
4
5
4 1
* *
2 *
2 1
5 1
4 2
* Less than one percent
2014 NAR Commercial Member Profile
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-7 PRIMARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS (Percent of Respondents) All PRIMARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS Commercial Investment Sales
Investment Sales Land Sales Land Sales Office Leasing Office Leasing Retail Building Sales Retail Leasing Retail Building Sales Office Building Sales Multi-family Building SalesRetail Leasing Industrial Building Sales Industrial Leasing Office Building Sales Commercial Property Management Multi-family Building Sales Consulting Development Industrial Building Sales Multi-family Property Management Commercial Appraisal Industrial Leasing Hospitality/Resort Sales Commercial Auctions Commercial Property Management Other
Consulting
Members 29% 27 24 20 20 19 18 17 14 10 9 9 6 4 3 1 11
29% 27% 24% 20% 20% 19% 18% 17% 14% 10% 9%
Development
9%
Multi-family Property Management
6%
Commercial Appraisal
4%
Hospitality/Resort Sales
3
Commercial Auctions
1%
Other
11% 0%
5%
10%
15%
2014 NAR Commercial Member Profile
20%
25%
30%
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-8 PRIMARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS BY LICENSE TYPE (Percent of Respondents)
Investment Sales Land Sales Office Leasing Retail Building Sales Retail Leasing Office Building Sales Multi-family Building Sales Industrial Building Sales Industrial Leasing Commercial Property Management Consulting Development Multi-family Property Management Commercial Appraisal Hospitality/Resort Sales Commercial Auctions Other
All Commercial Members 29% 27 24 20 20 19 18 17 14 10 9 9 6 4 3 1 11
Broker 30% 27 25 20 21 19 16 17 15 13 8 10 8 1 3 * 11
Licensed As Broker Sales Associate Agent 34% 30% 33 25 25 24 22 23 23 20 25 18 27 19 24 13 21 11 7 7 8 7 12 7 6 5 0 1 5 4 1 * 9 12
* Less than one percent
2014 NAR Commercial Member Profile
Appraiser 10% 18 10 11 5 14 6 8 5 7 17 2 3 68 2 1 18
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-9 PRIMARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS BY GENDER (Percent of Respondents)
Investment Sales Land Sales Office Leasing Retail Building Sales Retail Leasing Office Building Sales Multi-family Building Sales Industrial Building Sales Industrial Leasing Commercial Property Management Consulting Development Multi-family Property Management Commercial Appraisal Hospitality/Resort Sales Commercial Auctions Other
All Commercial Members 29% 27 24 20 20 19 19 17 14 10 9 9 6 4 3 1 11
Gender Male Female 31% 28 23 21 19 19 19 19 15 10 9 9 6 5 3 1 10
25% 26 22 16 18 15 19 13 10 9 3 5 7 3 4 * 18
* Less than one percent
2014 NAR Commercial Member Profile
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-10 SECONDARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS (Percent of Respondents) All SECONDARY BUSINESS SPECIALTYCommercial OF NAR'S COMMERCIAL MEMBERS Investment Sales
Investment Sales Land Sales Land Sales Retail Leasing Retail Leasing Office Leasing Office Building Sales Office Leasing Multi-family Building Sales Retail Building Sales Office Building Sales Consulting Multi-family Building Sales Industrial Building Sales Commercial Property Management Retail Building Sales Development Industrial Leasing Consulting Multi-family Property Management Industrial Building Sales Hospitality/Resort Sales Commercial Appraisal Commercial Property Management Commercial Auctions Other Development
Members 16% 15 14 12 12 11 11 10 9 8 8 7 4 2 1 1 9
16% 15% 14% 12% 12% 11% 11% 10% 9% 8% 8%
Industrial Leasing
7%
Multi-family Property Management
4%
Hospitality/Resort Sales
2%
Commercial Appraisal Commercial Auctions
1%
Other
9% 0%
5%
10%
2014 NAR Commercial Member Profile
15%
20%
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-11 REAL ESTATE EXPERIENCE OF NAR'S COMMERCIAL MEMBERS BY LICENSE TYPE (Percentage Distribution)
1 year or less 2 years 3 years 4 years 5 years 6 to 10 years 11 to 15 years 16 to 25 years 26 to 39 years 40 or more years Median (years)
NAR's Commercial Members * 1 1 1 1 15 15 21 32 14 25
Broker * * * * 1 11 12 22 37 17 28
Licensed As Broker Sales Associate Agent * 2% * 3 * 3 1 2 1 2 13 26 15 22 23 18 37 18 11 5 25 14
Appraiser * * * * * 3 7 18 41 31 34
* Less than one percent
2014 NAR Commercial Member Profile
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-12 NAR COMMERCIAL MEMBERS' YEARS OF EXPERIENCE AS COMMERCIAL AGENTS OR BROKERS BY LICENSE TYPE (Percentage Distribution)
1 year or less 2 years 3 years 4 years 5 years 6 to 10 years 11 to 15 years 16 to 25 years 26 to 39 years 40 or more years Median (years)
All Commercial Members 5% 3 3 2 4 20 14 21 22 7 25
Broker 3% 2 2 1 3 15 14 25 27 8 20
Licensed As Broker Sales Associate Agent 3% 11% 1 6 2 8 2 3 4 6 23 29 20 12 22 14 19 9 5 2 15 9
Appraiser 12% 2 2 1 1 8 7 20 36 12 25
2014 NAR Commercial Member Profile
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-13 NAR COMMERCIAL MEMBERS' YEARS OF EXPERIENCE AS COMMERCIAL AGENTS OR BROKERS BY MEMBERSHIP IN NAR AFFILIATES (Percentage Distribution) Membership in NAR Affiliates (Designee or Candidate) Certified Society of Accredited International Industrial All Counselors Land Property and Office Commercial of Real Consultant Specialists REALTORS速 Members Estate (CRE) (RLI) (CIPS) (SIOR) 1 year or less 2 years 3 years 4 years 5 years 6 to 10 years 11 to 15 years 16 to 25 years 26 to 39 years 40 or more years Median (years)
5% 3 3 2 4 20 14 21 22 7 15
* * * 5 5 10 5 30 40 5 25
7% * * * 2 15 15 31 25 5 22
6% * 5 2 5 23 17 13 19 5 11
* Less than one percent
2014 NAR Commercial Member Profile
* * * * * 3 14 23 51 9 28
Certified Institute of Commercial Not a Real Estate Investment member Management Member (CCIM of any (IREM) Institute) affiliate * 3 1 * 1 16 11 20 32 15 25
* 1 2 1 2 17 14 28 29 6 20
7% 3 4 2 5 21 15 19 18 6 14
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-14 REAL ESTATE AND COMMERCIAL REAL ESTATE EXPERIENCES OF NAR'S COMMERCIAL MEMBERS, BY GENDER (Percentage Distribution)
REAL ESTATE EXPERIENCE
1 year or less 2 years 3 years 4 years 5 years 6 to 10 years 11 to 15 years 16 to 25 years 26 to 39 years 40 or more years Median (years)
EXPERIENCE AS COMMERCIAL AGENT OR BROKER
Male
Female
Male
Female
1% 1 1 1 1 13 15 20 34 14 25
1% 1 1 1 2 22 13 23 29 6 12
4% 2 3 2 3 19 15 21 24 7 17
8% 4 4 3 6 24 15 19 16 1 12
2014 NAR Commercial Member Profile
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-15 LENGTH OF MEMBERSHIP IN NATIONAL ASSOCIATION OF REALTORS速 BY LICENSE TYPE (Percentage Distribution)
1 year or less 2 years 3 years 4 years 5 years 6 to 10 years 11 to 15 years 16 to 25 years 26 to 39 years 40 or more years Median (years)
NAR's Commercial Members 1% 2 2 1 3 19 17 23 24 8 18
Broker * 1 1 1 3 16 15 26 28 10 22
Licensed As Broker Sales Associate Agent * 3% * 5 2 6 1 3 2 4 19 29 19 21 26 15 26 10 6 2 19 11
Appraiser * 2 2 * * 8 13 21 36 18 28
* Less than one percent
2014 NAR Commercial Member Profile
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-16 LENGTH OF MEMBERSHIP IN NATIONAL ASSOCIATION OF REALTORS速 BY MEMBERSHIP IN NAR AFFILIATES (Percentage Distribution)
1 year or less 2 years 3 years 4 years 5 years 6 to 10 years 11 to 15 years 16 to 25 years 26 to 39 years 40 or more years Median (years)
All Commercial Members 1% 2 2 1 3 19 17 23 24 8 18
Membership in NAR Affiliates (Designee or Candidate) Certified Society of Certified Accredited International Industrial and Institute of Commercial Counselors Land Property Office Real Estate Investment Not a of Real Consultant Specialists REALTORS速 Management Member (CCIM member of Estate (CRE) (RLI) (CIPS) (SIOR) (IREM) Institute) any affiliate * * * * * * 1% * * 6 * 1 1 2 * * * * 3 1 3 * * 3 * 1 1 1 * 3 5 * 1 3 3 10 19 28 8 11 14 22 19 10 16 11 8 15 20 33 36 16 30 23 25 21 38 22 20 44 34 32 20 * 10 6 8 17 8 7 25 20 14 26 26 21 15
* Less than one percent
2014 NAR Commercial Member Profile
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 1-17 MEMBERSHIP IN OTHER NATIONAL/INTERNATIONAL ASSOCIATIONS (Percent of Respondents)
International Council of Shopping Centers (ICSC) The Appraisal Institute The Urban Land Institute (ULI) Building Owners and Managers Association (BOMA) National Association of Industrial & Office Properties (NAIOP) CREW Network U.S. Green Building Council (USGBC) The International Real Estate Federation (FIABCI) CoreNet Global American Hotel and Lodging Association (AHLA) National Multi-Housing Council (NMHC) Royal Institution of Chatered Surveryors (RICS) Association of Foreign Investors in Real Estate (AFIRE) American Resort Development Association (ARDA) International Facilities Management Association (IFMA) American College of Real Estate Lawyers (ACREL) The American Institute of Architects (AIA) None Other
2014 34% 11 9 8 7
2013 33% 11 8 8 6
2012 45% 16 13 15 12
2011 37% 18 13 16 13
2010 37% 20 16 12 13
2009 14% 5 4 6 5
2007 33% 9 8 9 11
5 2 1 2 2 2 2 1 *
5 4 4 3 2 2 2 1 1
8 8 3 3 2 4 3 1 2 *
7 10 3 6 3 4 3 1 1 2
10 NA 7 3 NA 7 6 NA NA *
2 NA NA 1 NA 1 NA NA NA 1
5 NA NA 3 NA 1 NA NA NA 1
1 1 * * 41
1 * * * 42
* 1 * 10
* 1 2 50
1 NA 5 12
NA NA 5 41
NA NA 11 34
* Less than one percent NA=Data not available
2014 NAR Commercial Member Profile
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 1-18 INFORMATION SOURCES NAR'S COMMERCIAL MEMBERS USE MOST (Percent of Respondents)
LoopNet NAR CoStar In-House Research CCIM/Net Catalyst Xceligent CommercialSearch.com Local CIE REIS CBRE Econometrics Advisors (formerly Torto Wheaton Research) Real Capital Analytics CIMLS Property Portfolio Research Real Estate Research Corporation COMMREX Plunkett Research Rosen Consulting Group Other
All Commercial Members 77% 48 41 29 16 15 14 14 13 6 5 5 5 3 2 * * 17
* Less than one percent
2014 NAR Commercial Member Profile
Chapter 2 The median number of transactions for commercial specialists was eight in 2013. The median transaction volume in 2013 among members who had a transaction was $2,554,700—an increase from the median sales volume of $2,507,700 in 2012. Nine percent of commercial members reported not having a transaction, which is the same share as in 2012. Brokers typically had a higher sales transaction volume than sales agent. Experience in both commercial real estate and real estate overall also plays a factor in the sales transaction volume. The median transaction leasing volume in 2013 among members who had a leasing transaction was $431,600. Twenty-four percent of commercial members reported not having a leasing transaction. The median dollar value of sales transactions in 2013 was $438,400. The median leasing dollar value for commercial members in 2013 was $160,000. The median square footage of sales transactions in 2013 was 11,300. Leasing transactions were typically 4,200 square feet. Commercial members who manage properties typically managed 60,000 total square feet, representing 20 total spaces. Commercial members typically managed 25,000 total office square feet, representing eight total offices. Seventy-two percent of all commercial members had no international transactions in 2013. However, 16 percent of commercial members reported an increase in international transactions, while only 1 percent had a decrease. About onequarter of commercial members reported international business was at least important to their company. Commercial members are familiar with tenant-in-common (TIC) transactions, and while 75 percent of them have not participated in such transactions, 26 percent indicated that they plan to engage in a TIC deal in the future. Additionally, 28 percent of commercial members participated in a 1031 Exchange in 2013.
2014 NAR Commercial Member Profile
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-1 Exhibit 2-2 Exhibit 2-3 Exhibit 2-4 Exhibit 2-5 Exhibit 2-6 Exhibit 2-7 Exhibit 2-8 Exhibit 2-9 Exhibit 2-10 Exhibit 2-11 Exhibit 2-12 Exhibit 2-13 Exhibit 2-14 Exhibit 2-15 Exhibit 2-16
NUMBER OF COMMERCIAL TRANSACTIONS, 2013 NUMBER OF COMMERCIAL TRANSACTIONS, 2013, BY EXPERIENCE SALES TRANSACTION VOLUME IN 2013-2006, BY LICENSE TYPE SALES TRANSACTION VOLUME IN 2013, BY EXPERIENCE TYPICAL DOLLAR VALUE OF SALES TRANSACTIONS IN 2013, BY LICENSE TYPE TYPICAL DOLLAR VALUE OF SALES TRANSACTIONS IN 2013, BY EXPERIENCE TYPICAL SIZE (IN SQUARE FEET) OF SALES TRANSACTIONS IN 2013, BY LICENSE TYPE LEASE TRANSACTION VOLUME (GROSS LEASE DOLLARS) 2013-2006, BY LICENSE TYPE TYPICAL DOLLAR VALUE PER LEASING TRANSACTION IN 2013, BY LICENSE TYPE TYPICAL DOLLAR VALUE PER LEASING TRANSACTION IN 2013, BY EXPERIENCE TYPICAL SIZE (IN SQUARE FEET) OF LEASING TRANSACTIONS IN 2013, BY LICENSE TYPE TYPICAL OFFICE SPACE MANAGED, AMONG MEMBERS WHO MANAGE PROPERTIES INTERNATIONAL COMMERCIAL TRANSACTIONS, 2013, BY LICENSE TYPE INTERNATIONAL COMMERCIAL TRANSACTIONS, 2013, BY MEMBERSHIP IN NAR AFFILIATES IMPORTANCE OF INTERNATIONAL BUSINESS TO COMPANY PARTICIPATION IN TENANT-IN-COMMON (TIC) TRANSACTIONS, BY LICENSE TYPE
Exhibit 2-17 PARTICIPATION IN TENANT-IN-COMMON (TIC) TRANSACTIONS, BY MEMBERSHIP IN NAR AFFILIATES Exhibit 2-18 PARTICIPATION IN 1031 EXCHANGE, BY LICENSE TYPE
2014 NAR Commercial Member Profile
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-1 NUMBER OF COMMERCIAL TRANSACTIONS, 2013 (Percentage Distribution)
None 1 to 4 5 to 9 10 to 14 15 to 19 20 or more Median (transactions)
All Commercial Members 9% 29 18 15 8 21 8
Licensed As Broker Sales Broker Associate Agent 6% 26 20 16 9 23 9
9% 28 21 12 8 22 7
12% 38 16 15 6 14 5
2014 NAR Commercial Member Profile
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-2 NUMBER OF COMMERCIAL TRANSACTIONS, 2013, BY EXPERIENCE (Percentage Distribution)
None 1 to 4 5 to 9 10 to 14 15 to 19 20 or more Median (transactions)
Experience as a Commercial Real Estate Agent or Broker All 6 to 15 16 to 25 26 years Commercial 2 years or 3 to 5 less years years years or more Members 9% 20% 8% 13% 8% 7% 29 55 41 32 29 27 18 5 31 16 16 21 15 20 13 13 14 16 8 * 5 8 8 9 21 * 3 19 26 22 8 3 5 6 8 8
* Less than one percent
2014 NAR Commercial Member Profile
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-3 SALES TRANSACTION VOLUME IN 2013-2006, BY LICENSE TYPE (Percentage Distribution)
Less than $100,000 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 to $4,999,999 $5,000,000 or more
2013 7% 5 5 9 12 29 24
No transactions 9 Median (including those with "no transactions") $2,103,400 Median (excluding those with "no transactions") $2,554,700
Licensed As Broker Associate Sales Agent
2012 7% 5 8 9 14 27 21
2011 8% 5 5 10 12 23 17
2010 9% 5 8 10 16 23 15
2009 8% 6 7 9 13 24 14
2008 18% 4 5 7 15 26 24
2006 15% 4 5 7 17 17 35
Broker 6% 5 4 9 12 31 26
5% 5 6 9 13 31 25
11% 5 6 9 15 24 18
9
22
15
19
NA
NA
7
6
12
NA
NA
$1,857,100 $1,058,300 $1,282,100 $1,067,000
$2,507,700 $2,010,500 $1,722,200 $1,767,900 $2,024,900 $2,248,700
2014 NAR Commercial Member Profile
$2,225,800 $2,193,500 $1,466,700 $2,902,300 $2,751,800 $1,813,300
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-4 SALES TRANSACTION VOLUME IN 2013, BY EXPERIENCE (Percentage Distribution) Experience as a Commercial Real Estate Agent or Broker
Real Estate Experience
Less than $100,000 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 to $4,999,999 $5,000,000 or more No transactions
2 years or less
3 to 5 years
6 to 15 years
16% * 11 16 21 11 * 26
20% 5 3 13 10 29 5 15
9% 7 7 9 12 26 20 10
16 to 25 26 years or years more 5% 4 6 9 12 29 27 8
6% 5 3 9 13 30 26 8
2 years or less
3 to 5 years
6 to 15 years
10% 8 9 12 11 20 6 24
12% 7 8 11 14 27 10 11
8% 6 6 8 13 28 23 8
16 to 25 26 years or years more 5% 2 5 8 15 27 32 6
6% 4 2 10 11 68 28 7
Median (including those with "no transactions")
$431,800 $769,200 $1,666,700 $2,206,900 $2,200,000
Median (excluding those with "no transactions")
$834,100 $1,254,200 $2,089,400 $3,000,000 $2,804,500 $1,000,000 $1,500,000 $2,450,400 $3,165,000 $2,986,200
2014 NAR Commercial Member Profile
$472,200 $1,071,400 $2,035,700 $2,333,300 $2,147,100
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-5 TYPICAL DOLLAR VALUE OF SALES TRANSACTIONS IN 2013, BY LICENSE TYPE (Percentage Distribution) All Commercial Members Less than $100,000 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 to $4,999,999 $5,000,000 or more Median
9% 20 28 24 10 7 2 $438,400
Licensed As Broker 7% 18 26 26 12 8 3 $490,400
Broker Associate 9% 23 31 21 7 9 * $395,200
2014 NAR Commercial Member Profile
Sales Agent 11% 23 31 22 6 6 1 $379,000
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-6 TYPICAL DOLLAR VALUE OF SALES TRANSACTIONS IN 2013, BY EXPERIENCE (Percentage Distribution)
Less than $100,000 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 to $4,999,999 $5,000,000 or more Median
Experience as a Commercial Real Estate Agent or Broker
All Commercial Members
2 years or less
3 to 5 years
6 to 15 years
9% 20 28 24 10 7 2 $438,400
13% 33 21 21 7 3 1 $297,600
13% 26 31 18 8 2 2 $338,700
10% 20 31 21 9 5 4 $411,300
* Less than one percent
2014 NAR Commercial Member Profile
16 to 25 26 years or years more 6% 20 29 26 8 7 4 $456,900
8% 17 23 28 13 6 5 $535,700
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-7 TYPICAL SIZE (IN SQUARE FEET) OF SALES TRANSACTIONS IN 2013, BY LICENSE TYPE (Percentage Distribution)
All Commercial Members 5,000 or less 5,000 to 24,999 25,000 to 49,999 50,000 to 99,999 100,000 to 249,999 250,000 to 499,999 500,000 to 999,999 1,000,000 or more Median
38% 38 10 6 3 2 1 1 11,300
Licensed As Broker 34% 39 11 7 4 3 2 2 13,200
Broker Associate 40% 40 11 6 3 1 1 * 10,000
Sales Agent 46% 36 5 6 3 2 2 1 7,200
2014 NAR Commercial Member Profile
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-8 LEASE TRANSACTION VOLUME (GROSS LEASE DOLLARS) 2013-2006, BY LICENSE TYPE (Percentage Distribution) Licensed As
Less than $100,000 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 to $4,999,999 $5,000,000 or more No transactions
2013 20% 13 9 10 9 6 9 24
2012 18% 12 10 11 10 11 7 21
2011 17% 11 8 8 8 9 6 34
2010 24% 11 9 8 7 7 6 25
2009 18% 9 6 7 7 7 4 42
2008 39% 12 11 11 9 10 8 NA
2006 45% 12 11 9 9 7 8 NA
NA
NA
Median (including those with "no transactions")
$169,200 $230,500 $93,100 $118,400 $45,000
Median (excluding those with "no transactions")
$431,600 $476,400 $402,100 $145,000 $330,200 $244,300 $183,300
Note: For multi-year lease terms, respondents included the total multi-year lease value. E.g., 3 year lease that is $500,000 per year, should be recorded as $1,500,000.
2014 NAR Commercial Member Profile
Broker Broker Associate 16% 20% 12 17 9 10 10 11 11 10 13 8 8 3 21 21
Sales Agent 23% 13 6 8 8 8 4 30
$277,700 $179,400 $87,000
$613,300 $312,500 $238,200
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-9 TYPICAL DOLLAR VALUE PER LEASING TRANSACTION IN 2013, BY LICENSE TYPE (Percentage Distribution) Licensed As
Less than $100,000 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 to $4,999,999 $5,000,000 or more Median
All Commercial Members 38% 30 17 9 4 1 1 $160,000
Broker 34% 29 18 10 5 1 3 $182,800
Broker Associate Sales Agent 38% 45% 34 27 16 13 8 8 4 3 1 2 * 2 $152,900 $127,800
2014 NAR Commercial Member Profile
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-10 TYPICAL DOLLAR VALUE PER LEASING TRANSACTION IN 2013, BY EXPERIENCE (Percentage Distribution) Experience as a Commercial Real Estate Agent or Broker All Commercial 2 years or Members less Less than $100,000 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 to $4,999,999 $5,000,000 or more Median
38% 30 17 9 4 1 1
67% 21 * 10 3 * *
$160,000
$74,600
3 to 5 years
6 to 15 years
16 to 25 years
26 years or more
47% 33 11 4 3 1 *
46% 26 14 9 3 1 1
31% 27 24 9 4 2 3
25% 36 18 10 7 3 1
$113,600 $123,100 $205,600
* Less than one percent
2014 NAR Commercial Member Profile
$204,200
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-11 TYPICAL SIZE (IN SQUARE FEET) OF LEASING TRANSACTIONS IN 2013, BY LICENSE TYPE (Percentage Distribution) All Commercial Members 5,000 or less 5,000 to 24,999 25,000 to 49,999 50,000 to 99,999 100,000 to 249,999 250,000 to 499,999 500,000 to 999,999 1,000,000 or more Median
60% 33 3 1 1 * * * 4,200
Licensed As Broker 57% 36 4 1 1 * * * 4,400
Broker Associate 60% 36 3 1 * * * * 4,200
Sales Agent 66% 27 3 2 1 1 1 * 3,800
* Less than one percent
2014 NAR Commercial Member Profile
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-12 TYPICAL OFFICE SPACE MANAGED, AMONG MEMBERS WHO MANAGE PROPERTIES (Medians) All Commercial Members Total typical square feet managed Total typical number of spaces managed Total typical office square feet managed Total typical number of offices managed
60,000 20 25,000 8
2014 NAR Commercial Member Profile
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-13 INTERNATIONAL COMMERCIAL TRANSACTIONS, 2013, BY LICENSE TYPE (Percentage Distribution) LICENSED AS
No international transactions An increase in international transactions from previous year About the same A decrease in international transactions from previous year
All Commercial Members 72%
Broker 78%
Broker Associate 62%
Sales Agent 61%
Appraisal 89%
16 11
13 8
21 16
24 15
4 4
1
1
1
1
2
* Less than one percent
2014 NAR Commercial Member Profile
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-14 INTERNATIONAL COMMERCIAL TRANSACTIONS, 2013, BY MEMBERSHIP IN NAR AFFILIATES (Percentage Distribution)
No international transactions An increase in international transactions from previous year About the same A decrease in international transactions from previous year
Membership in NAR Affiliates (Designee or Candidate) Certified Society of Certified Counselors Accredited International Industrial Institute of Commercial Not a of Real Land Property and Office Real Estate Investment member All Estate Consultant Specialists REALTORS速 Management Member (CCIM of any Commercial (CRE) (RLI) (CIPS) (SIOR) (IREM) Institute) affiliate Members 72% 62% 64% 53% 48% 78% 68% 75% 16 11
29 5
18 14
34 12
30 19
13 9
18 12
15 9
1
5
4
2
3
1
1
1
* Less than one percent
2014 NAR Commercial Member Profile
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-15 IMPORTANCE OF INTERNATIONAL BUSINESS TO COMPANY (Percentage Distribution)
All Commercial Members Extremely important Important Neutral Unimportant Not important at all
5% 19 36 11 29
2014 NAR Commercial Member Profile
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-16 PARTICIPATION IN TENANT-IN-COMMON (TIC) TRANSACTIONS, BY LICENSE TYPE (Percentage Distribution) LICENSED AS
Have completed a TIC transaction Have not completed a TIC transaction Plan on completing a TIC transaction in the future Do not plan on completing a TIC transaction in the future
Broker
Broker Associate
Sales Agent
Appraisal
25%
26%
27%
21%
17%
75
74
73
79
83
26%
26%
30%
24%
22%
74
75
70
76
78
All Commercial Members
2014 NAR Commercial Member Profile
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-17 PARTICIPATION IN TENANT-IN-COMMON (TIC) TRANSACTIONS, BY MEMBERSHIP IN NAR AFFILIATES (Percentage Distribution) Membership in NAR Affiliates (Designee or Candidate) Society of Accredited Certified Industrial and Institute of Certified Not a Counselors Land International Office Real Estate Commercial member All of Real Consultant Property REALTORS速 Management Investment Member of any Commercial (RLI) Specialists (CIPS) (SIOR) (IREM) (CCIM Institute) affiliate Members Estate (CRE) Have completed a TIC transaction Have not completed a TIC Plan on completing a TIC transaction in the future Do not plan on completing a TIC transaction in the future
25% 75
41% 59
34% 66
20% 80
35% 65
32% 68
31% 69
22% 78
26%
23%
24%
32%
20%
29%
30%
25%
74
77
76
68
80
71
70
75
2014 NAR Commercial Member Profile
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS Exhibit 2-18 PARTICIPATION IN 1031 EXCHANGE, BY LICENSE TYPE (Percentage Distribution) LICENSED AS
Yes, had a 1031 Exchange in 2013 No did not have this type of transaction in 2013, but had one in or more in previous years No, have never participated in a 1031 Exchange
Broker
Broker Associate
Sales Agent
Appraisal
28%
31%
33%
21%
13%
48
52
46
43
34
25
17
21
36
54
All Commercial Members
2014 NAR Commercial Member Profile
Chapter 3 Commercial members had an annual gross income in 2012 of $96,200. The annual income of commercial members is at its highest reported level since 2008. Brokers and appraisers tend to report the highest median annual incomes, while sales agents report the lowest among licensees. Those with less than two years of experience reported a median annual income of $46,100, while those with more than 26 years of experience reported a median annual income of $140,200. Eighty percent of commercial members reported working at least 40 hours a week. About half of commercial members spend 75 to 100 percent of their time on commercial real estate activity. Most commercial members are compensated on a commission basis. The most prevalent form of compensation is the percentage split commission, whereby the commission is split between the sales/leasing representative and the broker or broker’s office. Sixty-two percent of NAR’s commercial members derive 50 percent or more of their annual income from the real estate industry. Thirty-four percent of respondents did not derive income from commercial real estate leasing in 2013. Only 19 percent derived at least half to all of their income from leasing property in 2013. A total of 46 percent of commercial members derived 50 percent or more of their income in 2013 from the sales of real estate. The majority—57 percent—of commercial members reported working in a firm that is local. Thirty percent of commercial members work in an area with a population base of 249,999 or less, while 25 percent of commercial members work in an area where the population base is 2,000,000 or more people. Thirtyfour percent work in offices that employ only commercial brokers and/or agents. Fifty-seven percent work within an office that has a mix of commercial and residential brokers/agents. Eighty-six percent of commercial members earned some personal income from commercial real estate investments. Nineteen percent of commercial members made at least 50 percent of their personal income from their personal investment in commercial real estate.
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation
Exhibit 3-3 Exhibit 3-4 Exhibit 3-5 Exhibit 3-6 Exhibit 3-7 Exhibit 3-8
INCOME FROM REAL ESTATE ACTIVITIES--ANNUAL GROSS PERSONAL INCOME, 2013-2006, BY LICENSE TYPE INCOME FROM REAL ESTATE ACTIVITIES--ANNUAL GROSS PERSONAL INCOME, 2013, BY GENDER, EXPERIENCE, AND WORK HOURS INCOME FROM REAL ESTATE ACTIVITIES--ANNUAL GROSS PERSONAL INCOME, 2013, BY MEMBERSHIP IN NAR AFFILATES HOURS WORKED PER WEEK, BY LICENSE TYPE HOURS WORKED PER WEEK, BY LICENSE TYPE, BY GENDER AND EXPERIENCE TIME SPENT ON COMMERCIAL REAL ESTATE ACTIVITY, BY LICENSE TYPE TIME SPENT ON COMMERCIAL REAL ESTATE ACTIVITY, BY GENDER AND EXPERIENCE COMPENSATION STRUCTURES FOR NAR'S COMMERCIAL MEMBERS, 2013, BY LICENSE TYPE
Exhibit 3-9
COMPENSATION STRUCTURES FOR NAR'S COMMERCIAL MEMBERS, 2013, BY GENDER AND EXPERIENCE
Exhibit 3-1 Exhibit 3-2
Exhibit 3-10 COMPENSATION STRUCTURES FOR NAR'S COMMERCIAL MEMBERS, 2013, NAR MEMBER AFFILIATES Exhibit 3-11 SHARE OF ANNUAL INCOME FROM ALL TYPES OF COMMERCIAL ACTIVITIES, 2013, BY LICENSE TYPE SHARE OF ANNUAL INCOME FROM ALL TYPES OF COMMERCIAL ACTIVITIES, 2013, BY GENDER AND Exhibit 3-12 EXPERIENCE Exhibit 3-13 SHARE OF ANNUAL INCOME FROM COMMERCIAL SALES ACTIVITY, 2013, BY LICENSE TYPE Exhibit 3-14 SHARE OF ANNUAL INCOME FROM COMMERCIAL SALES ACTIVITY, 2013, BY GENDER AND EXPERIENCE Exhibit 3-15 SHARE OF ANNUAL INCOME FROM COMMERCIAL LEASING ACTIVITY, 2013, BY LICENSE TYPE SHARE OF ANNUAL INCOME FROM COMMERCIAL LEASING ACTIVITY, 2013, BY GENDER AND Exhibit 3-16 EXPERIENCE SHARE OF ANNUAL INCOME FROM COMMERCIAL PROPERTY MANAGEMENT ACTIVITY, 2013, BY LICENSE Exhibit 3-17 TYPE SHARE OF ANNUAL INCOME FROM COMMERCIAL PROPERTY MANAGEMENT, 2013, BY GENDER AND Exhibit 3-18 EXPERIENCE Exhibit 3-19 COMMERCIAL FIRM AFFILIATION Exhibit 3-20 FIRM CHARACTERISTICS, BY LICENSE TYPE Exhibit 3-21 FIRM COMPOSITION, BY LICENSE TYPE NUMBER OF ACTIVE COMMERCIAL SALES/LEASING AGENTS OR BROKERS, OR PROPERTY MANAGEMENT Exhibit 3-22 PROFESSIONALS IN THE FIRM, BY LICENSE TYPE Exhibit 3-23 POPULATION BASE FOR THE MARKET OFFICE PRACTICED, BY LICENSE TYPE PERSONAL INVESTMENT IN COMMERCIAL REAL ESTATE AS A PERCENTAGE OF PERSONAL INCOME IN Exhibit 3-24 2013, BY LICENSE TYPE
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation Exhibit 3-1 INCOME FROM REAL ESTATE ACTIVITIES--ANNUAL GROSS PERSONAL INCOME, 2013-2006, BY LICENSE TYPE (Percentage Distribution) LICENSED AS
Less than $25,000 $25,000 to $49,999 $50,000 to $99,999 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $1,000,000 More than $1,000,000 Median
2013
2012
2011
12% 14 26 33 11 3 1
12% 13 31 32 9 2 1
14% 15 29 30 9 2 1
2010 19% 16 30 28 6 2 1
2009 23% 16 28 23 7 2 *
2008 13% 12 25 34 12 3 1
2006 11% 11 24 33 13 5 2
Broker
Broker Associate
Sales Agent
Appraisal
8% 11 25 37 14 4 1
11% 16 28 34 9 2 *
22% 21 27 24 6 * 1
* * 100 * * * *
$91,100
$63,000
$75,000
$96,200 $90,200 $86,000 $76,500 $68,600 $99,900 $115,600 $124,300
*Less than one percent
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation Exhibit 3-2 INCOME FROM REAL ESTATE ACTIVITIES--ANNUAL GROSS PERSONAL INCOME, 2013, BY GENDER, EXPERIENCE, AND WORK HOURS (Percentage Distribution)
Less than $25,000 $25,000 to $49,999 $50,000 to $99,999 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $1,000,000 More than $1,000,000 Median
GENDER All Commercial Male Female Members 12% 12% 15% 14 13 18 26 24 32 33 35 27 11 12 6 3 3 2 1 1 * $96,200 $104,300 $76,600
Experience as a Commercial Real Estate Agent or Broker 2 years 3 to 5 6 to 15 16 to 25 26 years or less years years years or more
Less than 20 to 39 40 to 59 60 hours 20 hours hours hours or more
34% 15% 11% 8% 9% 19 24 17 10 10 22 35 28 27 20 20 22 33 36 41 4 2 9 16 15 * 2 2 4 4 * 1 1 * 1 $46,100 $65,700 $89,300 $120,800 $140,200
57% 31% 9% 3% 21 21 14 8 12 27 26 26 10 17 37 38 * 3 11 18 * 1 2 6 * * * 2 $21,900 $47,600 $104,100 $151,300
*Less than one percent
2014 NAR Commercial Member Profile
WORK HOURS
Business Revenue and Firm Affiliation Exhibit 3-3 INCOME FROM REAL ESTATE ACTIVITIES--ANNUAL GROSS PERSONAL INCOME, 2013, BY MEMBERSHIP IN NAR AFFILATES (Percentage Distribution)
Less than $25,000 $25,000 to $49,999 $50,000 to $99,999 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $1,000,000 More than $1,000,000 Median
All Commercial Members 12% 14 26 33 11 3 1 $96,200
Counselors of Real Estate (CRE) 7% * 13 60 13 7 * $175,000
Membership in NAR Affiliates (Designee or Candidate) Society of Certified Accredited Certified Industrial and Institute of Commercial Land International Office Real Estate Investment Consultant Property REALTORS速 Management Member (CCIM (RLI) Specialists (CIPS) (SIOR) (IREM) Institute) 4% 10% 2% 4% 6% 6 12 * 7 9 25 26 10 27 23 29 26 44 42 40 29 22 30 12 17 8 4 12 6 5 * 2 2 1 1 $177,600 $111,500 $229,500 $142,900 $145,000
*Less than one percent
2014 NAR Commercial Member Profile
Not a member of any affiliate 16% 17 26 31 8 1 1 $82,700
Business Revenue and Firm Affiliation Exhibit 3-4 HOURS WORKED PER WEEK, BY LICENSE TYPE (Percentage Distribution)
Less than 20 hours 20 to 39 hours 40 to 59 hours 60 hours or more
All Commercial Members 4% 16 57 23
Broker 3% 14 57 26
LICENSED AS Broker Sales Associate Agent 1% 17 60 22
2014 NAR Commercial Member Profile
6% 22 55 18
Appraisal 4% 8 67 21
Business Revenue and Firm Affiliation Exhibit 3-5 HOURS WORKED PER WEEK, BY LICENSE TYPE, BY GENDER AND EXPERIENCE (Percentage Distribution)
Less than 20 hours 20 to 39 hours 40 to 59 hours 60 hours or more
All Commercial Members 4% 16 57 23
GENDER Male 3% 15 58 24
Female 4% 18 55 23
Experience as a Commercial Real Estate Agent or Broker 2 years or less 5% 27 54 14
3 to 5 years 6% 17 56 21
2014 NAR Commercial Member Profile
6 to 15 16 to 25 26 years years years or more 3% 2% 4% 14 13 18 58 59 58 25 26 21
Business Revenue and Firm Affiliation Exhibit 3-6 TIME SPENT ON COMMERCIAL REAL ESTATE ACTIVITY, BY LICENSE TYPE (Percentage Distribution)
None 1 to 24% 25 to 49% 50 to 74% 75 to 100%
All Commercial Members 3% 17 13 17 51
LICENSED AS Broker
Broker Associate
Sales Agent
Appraisal
2% 15 12 17 54
3% 15 15 17 50
4% 22 13 15 45
4% 7 10 21 58
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation Exhibit 3-7 TIME SPENT ON COMMERCIAL REAL ESTATE ACTIVITY, BY GENDER AND EXPERIENCE (Percentage Distribution)
None 1 to 24% 25 to 49% 50 to 74% 75 to 100%
All Commercial Members 3% 17 13 17 51
GENDER Male 2% 14 11 17 56
Female 6% 25 14 14 41
Experience as a Commercial Real Estate Agent or Broker 2 years or less 21% 32 13 12 23
3 to 5 years 6% 29 17 15 33
2014 NAR Commercial Member Profile
6 to 15 years 1% 17 14 17 50
16 to 25 years 1% 13 12 17 57
26 years or more 1% 9 10 17 63
Business Revenue and Firm Affiliation Exhibit 3-8 COMPENSATION STRUCTURES FOR NAR'S COMMERCIAL MEMBERS, 2013, BY LICENSE TYPE (Percentage Distribution)
Percentage commission split 100% commission Fee for service Commission plus a share of profits Commission plus salary Salary plus a share of profits Straight salary Share of profits only
All Commercial Members 45% 33 6 4 4 4 3 2
LICENSED AS Broker
Broker Associate
Sales Agent
Appraisal
33% 41 4 5 4 6 3 3
62% 29 2 3 2 1 1 *
61% 24 1 3 4 3 3 1
17% 16 49 4 * 6 6 2
*Less than one percent
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation Exhibit 3-9 COMPENSATION STRUCTURES FOR NAR'S COMMERCIAL MEMBERS, 2013, BY GENDER AND EXPERIENCE (Percentage Distribution)
Percentage commission split 100% commission Fee for service Commission plus a share of profits Commission plus salary Salary plus a share of profits Straight salary Share of profits only
All Commercial Members 45% 33 6 4 4 4 3 2
Experience as a Commercial Real Estate Agent or Broker
GENDER Male Female 42% 36 6 5 3 4 2 2
55% 24 3 2 5 3 6 1
2 years or less
3 to 5 years
56% 24 6 5 2 3 3 *
56% 31 1 1 3 3 3 1
*Less than one percent
2014 NAR Commercial Member Profile
6 to 15 16 to 25 26 years years years or more 49% 34 4 2 3 3 4 *
45% 31 6 4 5 5 2 4
32% 37 8 8 4 6 2 4
Business Revenue and Firm Affiliation Exhibit 3-10 COMPENSATION STRUCTURES FOR NAR'S COMMERCIAL MEMBERS, 2013, NAR MEMBER AFFILIATES (Percentage Distribution)
Membership in NAR Affiliates (Designee or Candidate)
Percentage commission split 100% commission Fee for service Commission plus a share of profits Commission plus salary Salary plus a share of profits Straight salary Share of profits only
Accredited Counselors Land All of Real Consultant Commercial (RLI) Members Estate (CRE) 45% 20% 46% 33 20 32 6 30 4 4 10 5 4 * 5 4 10 2 3 5 * 2 5 5
Certified International Property Specialists (CIPS)
Society of Industrial and Office REALTORS速 (SIOR)
52% 31 5 5 2 3 3 *
27% 42 * 11 9 8 * 3
*Less than one percent
2014 NAR Commercial Member Profile
Certified Commercial Institute of Investment Real Estate Member Management (CCIM (IREM) Institute) 19% 24 13 7 8 24 5 *
42% 34 3 7 5 5 2 3
Not a member of any affiliate 46% 34 6 3 3 3 3 2
Business Revenue and Firm Affiliation Exhibit 3-11 SHARE OF ANNUAL INCOME FROM ALL TYPES OF COMMERCIAL ACTIVITIES, 2013, BY LICENSE TYPE (Percentage Distribution)
LICENSED AS
None 1 to 24% 25 to 49% 50 to 74% 75 to 100% Median
All Commercial Members 9% 18 12 15 47 68%
Broker
Broker Associate
Sales Agent
Appraisal
6% 16 12 16 51 75%
9% 18 13 13 47 69%
14% 25 10 13 38 52%
7% 12 14 16 51 75%
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation Exhibit 3-12 SHARE OF ANNUAL INCOME FROM ALL TYPES OF COMMERCIAL ACTIVITIES, 2013, BY GENDER AND EXPERIENCE (Percentage Distribution)
None 1 to 24% 25 to 49% 50 to 74% 75 to 100% Median
All Commercial Members 9% 18 12 15 47 68%
GENDER Male 7% 16 13 16 50 72%
Female 15% 27 9 10 39 47%
Experience as a Commercial Real Estate Agent or Broker 2 years or less 42% 23 8 6 20 9%
2014 NAR Commercial Member Profile
3 to 5 years 13% 36 8 15 29 28%
6 to 15 years 7% 20 12 16 45 67%
16 to 25 years 2% 15 13 16 54 77%
26 years or more 4% 12 13 14 58 78%
Business Revenue and Firm Affiliation Exhibit 3-13 SHARE OF ANNUAL INCOME FROM COMMERCIAL SALES ACTIVITY, 2013, BY LICENSE TYPE (Percentage Distribution)
LICENSED AS
None 1 to 24% 25 to 49% 50 to 74% 75 to 100% Median
All Commercial Members 19% 18 17 22 24 44%
Broker
Broker Associate
Sales Agent
Appraisal
15% 18 19 23 25 47%
13% 15 18 24 30 54%
24% 19 13 23 21 38%
55% 20 10 9 7 0%
*Less than one percent
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation Exhibit 3-14 SHARE OF ANNUAL INCOME FROM COMMERCIAL SALES ACTIVITY, 2013, BY GENDER AND EXPERIENCE (Percentage Distribution)
None 1 to 24% 25 to 49% 50 to 74% 75 to 100% Median
All Commercial Members 19% 18 17 22 24 44%
GENDER Male 16% 16 18 25 25 50%
Female 28% 23 13 15 22 23%
Experience as a Commercial Real Estate Agent or Broker 2 years or 3 to 5 6 to 15 16 to 25 26 years less years years years or more 57% 22% 16% 12% 16% 17 26 18 14 20 5 9 16 21 21 8 17 25 26 22 14 26 26 27 22 0% 31% 50% 53% 42%
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation Exhibit 3-15 SHARE OF ANNUAL INCOME FROM COMMERCIAL LEASING ACTIVITY, 2013, BY LICENSE TYPE (Percentage Distribution)
None 1 to 24% 25 to 49% 50 to 74% 75 to 100% Median
All Commercial Members 34% 28 19 12 7 14%
LICENSED AS Broker
Broker Associate
Sales Agent
Appraisal
28% 29 21 14 8 18%
30% 31 19 14 6 16%
37% 28 17 10 6 12%
72% 16 9 3 1 0%
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation Exhibit 3-16 SHARE OF ANNUAL INCOME FROM COMMERCIAL LEASING ACTIVITY, 2013, BY GENDER AND EXPERIENCE (Percentage Distribution)
None 1 to 24% 25 to 49% 50 to 74% 75 to 100% Median
All Commercial Members 34% 28 19 12 7 14%
GENDER Male 31% 29 22 13 6 16%
Female 43% 26 10 12 9 7%
Experience as a Commercial Real Estate Agent or Broker 2 years or less 70% 20 2 5 4 0%
3 to 5 years 43% 33 13 5 7 6%
2014 NAR Commercial Member Profile
6 to 15 years 33% 27 19 13 8 15%
16 to 25 years 26% 28 24 16 7 21%
26 years or more 26% 31 22 14 7 19%
Business Revenue and Firm Affiliation Exhibit 3-17 SHARE OF ANNUAL INCOME FROM COMMERCIAL PROPERTY MANAGEMENT ACTIVITY, 2013, BY LICENSE TYPE (Percentage Distribution)
None 1 to 24% 25 to 49% 50 to 74% 75 to 100% Median
All Commercial Members 68% 19 6 4 4 0%
LICENSED AS Broker
Broker Associate
Sales Agent
Appraisal
60% 22 8 6 5 0%
71% 21 4 2 2 0%
78% 13 3 3 3 0%
78% 16 4 2 * 0%
*Less than one percent
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation Exhibit 3-18 SHARE OF ANNUAL INCOME FROM COMMERCIAL PROPERTY MANAGEMENT, 2013, BY GENDER AND EXPERIENCE (Percentage Distribution)
None 1 to 24% 25 to 49% 50 to 74% 75 to 100% Median
All Commercial Members 68% 19 6 4 4 0%
Experience as a Commercial Real Estate Agent or Broker
GENDER Male
Female
2 years or less
3 to 5 years
6 to 15 years
16 to 25 years
26 years or more
66% 21 6 5 3 0%
74% 14 5 3 5 0%
85% 9 2 1 4 0%
68% 22 3 2 5 0%
69% 18 5 5 4 0%
66% 17 10 4 3 0%
61% 26 5 5 3 0%
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation Exhibit 3-19 COMMERCIAL FIRM AFFILIATION (Percent of Respondents)
Independent-not affiliated with a firm Re/Max Commercial KW Commercial Coldwell Banker Commercial Century 21 Commercial NAI Global CB Richard Ellis Cushman & Wakefield Colliers International ERA Commercial Investment Network Sperry Van Ness Newmark Grubb Knight Frank Marcus & Millichap Transwestern Commercial Services TCN Worldwide Cassidy Turley Duke Realty Corporation Jones Lang LaSalle Lee and Associates Lend Lease ONCOR International Studley Trammell Crow Tishman Speyer Other
All Commercial Members 42% 6 5 3 3 2 1 1 1 1 1 * * * * * * * * * * * * * 35
*Less than one percent
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation Exhibit 3-20 FIRM CHARACTERISTICS, BY LICENSE TYPE (Percentage Distribution)
LICENSED AS
Local Regional (2 or more States) Statewide International National
All Commercial Members 57% 11 13 13 6
Broker
Broker Associate
Sales Agent
Appraisal
63% 10 13 9 5
46% 13 12 20 9
52% 12 10 18 8
64% 13 19 3 2
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation Exhibit 3-21 FIRM COMPOSITION, BY LICENSE TYPE (Percentage Distribution)
More residential than commercial brokers/agents Commercial brokers/agents only More commercial than residential brokers/agents Not a brokerage firm Residential brokers/agents only
All Commercial Members 47% 34 10 6 4
LICENSED AS Broker
Broker Associate
Sales Agent
Appraisal
34% 44 12 5 5
68% 23 5 1 3
62% 24 7 2 4
21% 23 10 43 3
*Less than one percent
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation Exhibit 3-22 NUMBER OF ACTIVE COMMERCIAL SALES/LEASING AGENTS OR BROKERS, OR PROPERTY MANAGEMENT PROFESSIONALS IN THE FIRM, BY LICENSE TYPE (Percentage Distribution)
LICENSED AS
None One 2 to 5 6 to 25 26 to 50 51 to 100 101 to 250 251 to 500 501 to 999 1,000 or more Don't know Not applicable
All Commercial Members 2% 19 40 23 5 3 2 1 1 2 3 1
Broker
Broker Associate
Sales Agent
Appraisal
2% 28 42 20 4 2 * 1 * 1 * *
1% 8 40 24 8 6 4 2 1 3 5 1
1% 5 38 31 6 4 4 1 1 4 6 *
12% 28 32 7 1 * 1 * * * 2 17
*Less than one percent
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation Exhibit 3-23 POPULATION BASE FOR THE MARKET OFFICE PRACTICED, BY LICENSE TYPE (Percentage Distribution)
LICENSED AS
Less than 49,999 50,000 to 99,999 100,000 to 249,999 250,000 to 499,999 500,000 to 999,999 1,000,000 to 1,999,999 2,000,000 to 3,999,999 4,000,000 or more
All Commercial Members 6% 9 15 14 14 17 11 14
Broker
Broker Associate
Sales Agent
Appraisal
7% 8 17 12 14 19 10 14
7% 9 16 15 15 15 8 16
5% 11 13 17 12 18 12 13
7% 10 10 18 21 12 10 14
2014 NAR Commercial Member Profile
Business Revenue and Firm Affiliation Exhibit 3-24 PERSONAL INVESTMENT IN COMMERCIAL REAL ESTATE AS A PERCENTAGE OF PERSONAL INCOME IN 2013, BY LICENSE TYPE (Percentage Distribution)
LICENSED AS
None 1 to 24% 25 to 49% 50 to 74% 75 to 100%
All Commercial Members 14% 51 16 9 10
Broker
Broker Associate
Sales Agent
Appraisal
12% 49 17 11 11
13% 51 21 6 8
22% 56 13 6 4
13% 53 7 13 13
2014 NAR Commercial Member Profile
Chapter 4 The typical commercial REALTORŽ is 59 years old. Brokers, broker associates, and appraisers are the most seasoned among commercial members, while sales agents have the largest representation of younger commercial members. At 77 percent, the majority of commercial members are male. There may be more females entering the profession, as 35 percent of those with two years or less experience are women compared with 14 percent of those with 26 years or more experience. Sales agents have the largest representation of female practitioners at 29 percent. Racial and ethnic minorities comprise a small but significant portion of NAR commercial members. Eighty-nine percent of members identify themselves as White/Caucasian. Latino/Hispanics account for four percent of commercial members, while Asian/Pacific Islander account for three percent, and Black/African Americans account for two percent of commercial members. Thirty-five percent of commercial members have a bachelor’s degree, while another 10 percent have completed some graduate school. Nineteen percent have earned a graduate degree. Seventy-nine percent of commercial REALTORSŽ are married, with 13 percent being divorced, and five percent being single and never married.
2014 NAR Commercial Member Profile
DEMOGRAPHIC CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 4-1 Exhibit 4-2 Exhibit 4-3 Exhibit 4-4 Exhibit 4-5 Exhibit 4-6 Exhibit 4-7 Exhibit 4-8 Exhibit 4-9 Exhibit 4-10
AGE DISTRIBUTION OF NAR'S COMMERCIAL MEMBERS, BY LICENSE TYPE AND GENDER GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS, BY LICENSE TYPE GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS, BY COMMERCIAL REAL ESTATE GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS, BY NAR AFFILIATES RACIAL AND ETHNIC DISTRIBUTION OF NAR'S COMMERCIAL MEMBERS, BY AGE AND GENDER HIGHEST EDUCATION LEVEL OF NAR'S COMMERCIAL MEMBERS HIGHEST EDUCATION LEVEL OF NAR'S COMMERCIAL MEMBERS BY LICENSE TYPE HIGHEST EDUCATION LEVEL OF NAR'S COMMERCIAL MEMBERS MARITAL STATUS OF NAR'S COMMERCIAL MEMBERS
2014 NAR Commercial Member Profile
DEMOGRAPHIC CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 4-1 AGE DISTRIBUTION OF NAR'S COMMERCIAL MEMBERS, BY LICENSE TYPE AND GENDER (Percentage Distribution)
All Commercial Members Under 30 years 31 to 35 years 36 to 40 years 41 to 45 years 46 to 50 years 51 to 55 years 56 to 60 years 61 to 65 years 66 years and over Median age
1% 2 3 5 10 14 18 19 25 59
Licensed As Broker 1% 2 3 4 9 15 20 21 26 60
Broker Associate 1% 1 2 5 13 12 18 20 28 60
Sales Agent 4% 5 5 9 12 16 15 14 21 55
Gender Appraiser * 5 5 3 5 10 22 23 26 60
* Less than one percent
2014 NAR Commercial Member Profile
Male 1% 3 3 5 9 13 17 20 29 60
Female 3% 1 4 7 16 18 23 16 13 56
DEMOGRAPHIC CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 4-2 GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS (Percentage Distribution)
All Commercial Members Male Female
77% 23%
GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS (Percentage Distribution)
Female, 23%
Male, 77%
2014 NAR Commercial Member Profile
DEMOGRAPHIC CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 4-3 GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS, BY LICENSE TYPE (Percentage Distribution)
All Commercial Members Male Female
77% 23
Licensed As Broker 79% 21
Broker Associate 77% 23
Sales Agent 71% 29
Appraiser 86% 14
2014 NAR Commercial Member Profile
DEMOGRAPHIC CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 4-4 GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS, BY COMMERCIAL REAL ESTATE EXPERIENCE (Percentage Distribution)
All Commercial Members Male Female
77% 23
Experience as a Commercial Real Estate Agent or Broker 2 years or 3 to 5 6 to 15 16 to 25 26 years or less years years years more 65% 69% 75% 80% 86% 35 31 25 20 14
2014 NAR Commercial Member Profile
DEMOGRAPHIC CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 4-5 GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS, BY NAR AFFILIATES (Percentage Distribution)
Membership in NAR Affiliates (Designee or Candidate) Certified Certified Society of Commercial Counselors Accredited International Industrial Institute of Investment All of Real Land Property and Office Real Estate Member Commercial Estate Consultant Specialists REALTORS速 Management (CCIM Members (CRE) (RLI) (CIPS) (SIOR) (IREM) Institute) Male Female
77% 23
75% 25
83% 17
73% 27
95% 5
2014 NAR Commercial Member Profile
71% 29
82% 18
Not a member of any affiliate 76% 24
DEMOGRAPHIC CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 4-6 RACIAL AND ETHNIC DISTRIBUTION OF NAR'S COMMERCIAL MEMBERS, BY AGE AND GENDER (Percentage Distribution)
All Commercial Members White/Caucasian Latino/Hispanic Asian/Pacific Islander Black/African American American Indian/Eskimo/Aleut Other
Age
Gender
89% 4 3
39 or younger 87% 7 4
40 to 49 80% 7 7
50 to 59 88% 4 4
60 or older 93% 3 2
Male 91% 4 2
Female 85% 4 6
2 1
2 *
3 *
2 1
1 1
2 *
2 1
2
2
3
3
1
2
3
* Less than one percent
2014 NAR Commercial Member Profile
DEMOGRAPHIC CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 4-7 HIGHEST EDUCATION LEVEL OF NAR'S COMMERCIAL MEMBERS (Percentage Distribution)
All Commercial Members High School Some College/ Associates Degree Bachelor's Degree Graduate Study Graduate Degree
HIGHEST EDUCATION LEVEL OF NAR'S COMMERCIAL MEMBERS (Percentage Distribution)
5% 31% High School, 5% 35%
Graduate Degree, 19%
10% 19%
Graduate Study, 10%
Bachelor's Degree, 35%
2014 NAR Commercial Member Profile
Some College/ Associates Degree, 31%
DEMOGRAPHIC CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 4-8 HIGHEST EDUCATION LEVEL OF NAR'S COMMERCIAL MEMBERS BY LICENSE TYPE (Percentage Distribution)
High School Some College/ Associates Degree Bachelor's Degree Graduate Study Graduate Degree
Licensed As Broker Sales Associate Agent
All Commercial Members 5% 31
Broker 4% 28
6% 33
7% 38
Appraiser 2% 16
35 10 19
37 12 19
29 8 23
34 6 16
43 22 17
2014 NAR Commercial Member Profile
DEMOGRAPHIC CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 4-9 HIGHEST EDUCATION LEVEL OF NAR'S COMMERCIAL MEMBERS (Percentage Distribution)
Membership in NAR Affiliates (Designee or Candidate)
All Counselors Commercial of Real Members Estate (CRE)
Accredited Land Consultant (RLI)
Certified Society of International Industrial and Institute of Property Office Real Estate Specialists REALTORS速 Management (CIPS) (SIOR) (IREM)
Certified Commercial Investment Member (CCIM Institute)
Not a member of any affiliate
High School Some College/ Associates Degree
5% 31
* 12
10% 26
4% 28
* 12
4% 27
4% 24
5% 34
Bachelor's Degree Graduate Study Graduate Degree
35 10 19
29 12 47
38 8 18
20 14 35
58 16 14
43 14 12
39 14 20
33 9 18
* Less than one percent
2014 NAR Commercial Member Profile
DEMOGRAPHIC CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS Exhibit 4-10 MARITAL STATUS OF NAR'S COMMERCIAL MEMBERS (Percentage Distribution)
Married Single (never married) Divorced Widowed Other
All Commercial Members 79% 5% 13% 2% 1%
MARITAL STATUS OF NAR'S COMMERCIAL MEMBERS (Percentage Distribution) Widowed, 2% Divorced, 13%
Other, 1%
Single (never married), 5%
Married, 79%
2014 NAR Commercial Member Profile
Methodology In March 2014, NAR invited a random sample of 49,113 REALTORS® with an interest in commercial real estate to fill out an on-line survey. A total of 2,213 responses were received for an overall response rate of 4.5 percent. All information in this report is representative of member characteristics in 2014 while sales and lease transaction values and income are characteristic of calendar year 2013. The NATIONAL ASSOCIATION OF REALTORS® is committed to equal opportunity in the real estate industry. In accordance with this commitment, racial and ethnic information was collected and included in this report. The primary measure of central tendency used throughout this report is the median – the middle point in the distribution of responses to a particular question or, equivalently, the point at which half of the responses are above and below a particular value.
2014 NAR Commercial Member Profile
The NATIONAL ASSOCIATION OF REALTORS®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members, including NAR’s institutes, societies and councils, involved in all aspects of the real estate industry. NAR membership includes brokers, sales people, property managers, appraisers, counselors and others engaged in both residential and commercial real estate. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics. Working for America's property owners, the National Association provides a facility for professional development, research and exchange of information among its members and to the public and government for the purpose of preserving the free enterprise system and the right to own real property. NATIONAL ASSOCIATION OF REALTORS® COMMERCIAL & GLOBAL SERVICES NAR’s Commercial & Global Services Group provides REALTORS® the resources and tools they need to succeed in commercial and residential markets worldwide. NAR's commercial and global interests are implemented through the integration of professional education programs, industry research & resources, strategic affiliations and networking opportunities. NAR’s Commercial efforts represent the collective commercial real estate constituencies of NAR, including the members of the NAR’s commercial affiliate organizations– the CCIM Institute, the Counselors of Real Estate (CRE), the Institute of Real Estate Management (IREM), the REALTORS® Land Institute (RLI), and the Society of Industrial and Office REALTORS® (SIOR). NAR works to serve the needs of our commercial practitioner members and the commercial real estate industry through the development of valuable products and services, technology initiatives, public policy advocacy, education, research and legal analysis. www.REALTOR.org/Commercial Blog.CommercialSource.com
NATIONAL ASSOCIATION OF REALTORS® 430 North Michigan Avenue Chicago, IL 60611- 4087 1-800-874-6500 2014 NAR Commercial Member Profile
NAR’s Commercial Affiliate Organizations CCIM Institute (CCIM) The CCIM Institute has conferred the Certified Commercial Investment Member (CCIM) designation since 1969. Professional experience requirements ensure that a CCIM is skilled in both theory and practice. The Institute stresses education, networking and ethical practice. Contact CCIM at 312-321-4460 or at www.ccim.com. Counselors of Real Estate (CRE™) The Counselors of Real Estate is an international network of commercial practitioners who provide advice to clients on complex real property situations and land-related issues. CRE designated members hold prominent positions in real estate, financial, legal and accounting firms, as well as in government and academia. Membership is extended by invitation only on either a sponsored or self-initiated basis. Contact CRE at 312-329-8427 or at www.cre.org Institute of Real Estate Management (IREM®) The Institute of Real Estate Management provides training, information, research, analysis and practical advice for those who manage income-producing real estate of all types at all career levels. The Institute awards designations of Certified Property Manager (CPM), the Accredited Residential Manager® and the Accredited Management Organization® (ARO). Contact IREM at 312-329-6000 or at www.irem.org.
2014 NAR Commercial Member Profile
NAR’s Commercial Affiliate Organizations REALTORS® Land Institute (RLI) As recognized experts in land, RLI members specialize in farms and ranches; undeveloped tracts of land; transitional and development land; subdivision and wholesaling of lots; and site selection and assemblage. RLI has awarded the Accredited Land Consultation (ALC) designation to a select group of over 1,000 land specialists since 1944. Contact RLI at 312-329-8446 or at www.rliland.com Society of Industrial and Office REALTORS® (SIOR) The Society awards the SIOR (Specialist, Industrial & Office Real Estate) designation to brokerage specialists who meet its strict experience, transaction, education and ethical standards. Recipients of this designation are recognized within the commercial brokerage industry as the most experienced and capable practitioners. One of the leading commercial and industrial real estate associations, the Society has 3,000 members in 630 cities in 34 countries. Contact SIOR at 202-449-8200 or at www.sior.com
2014 NAR Commercial Member Profile