Us commercial property sales continue to grow

Photo: Michael Tapp

The NAR's latest report found that even with challenges in the market, its commercial members saw a rise in median sales transaction volume to $2,554,700, up nearly $50,000 from 2012.

“Despite a government shutdown, regulatory changes and a budget sequestration, ongoing job creation has helped the commercial market make continued progress,” said NAR President Steve Brown, co-owner of Irongate Inc. Realtors in Dayton, Ohio.

Commercial members completed a median of eight transactions in 2013, equal to the previous year. Nine percent of commercial members reported not having a transaction in 2013, also the same as 2012. Brokers typically had a greater sales transaction volume than sales agents.

“Realtors who practice commercial real estate help build our nation’s communities by helping their clients make informed business decisions and reliable commercial investments that support economic growth," added Brown. "A stronger commercial market is a good indicator of a recovering and growing economy.”

76 per cent of commercial members reported having a leasing transaction; their median transaction leasing volume in 2013 was $431,600. 29 per cent of members cited investment sales as their primary business specialty, making it the most popular area of concentration. Land sales and office leasing were reported as the second and third most popular primary commercial specialties.

28 per cent of commercial members were involved in international transactions in 2013. 16 per cent of commercial members reported an increase in international transactions, while only 1 per cent had a decrease. Nearly one-fourth of commercial members reported international business is important to their company.