Broker Attrition: Who's Left?

The popular word now in real estate is “attrition”–the reduction in numbers usually by resignation or retirement of some sort. Everyone is talking about a form of attrition, whether it is in number of transactions, loans closing or some other measure that we like to use.

However, as a broker, I am seeing another kind of attrition among my colleagues. The attrition rate of brokers and other service providers in this down market is rarely discussed and not easy to quantify. Most brokers do not like speaking about the rate at which their counterparts are leaving the commercial real estate industry. But there is definitely a bright side to working with real estate professionals that are products of the attrition rate and faring well in this market.

It’s no big secret that brokers are typically paid on commissions earned from sales. Therefore, when there are fewer sales, there are fewer commissions. And when there are fewer commissions to go around, people have a tough time maintaining a lifestyle or paying bills altogether. Some brokers just can’t afford to be brokers anymore.