WASHINGTON, DC—Commercial brokers and sales agents worry about competition like everyone else—both at the industry level and within their own companies as well. This year, it so happens, there is more competition at the company level to worry about.
That is one of the findings in a new report from the Washington DC-based National Association of Realtors. The report, called 2016 Profile of Real Estate Firms, surveyed a wide universe of both residential and commercial firms.
Now to be clear, the report's overwhelming message was that both commercial and residential shops are optimistic about the industry for 2016.
It found that 67% of commercial real estate firms expect profitability to improve this year. However, that percentage that is down from 75% in 2015. Of course, 67% is still a healthy percentage. The reason companies remain bullish about the industry is that job growth is still increasing, NAR chief economist Lawrence Yun tells GlobeSt.com.
As it turns out, though, sometimes they don't like it growing specifically in their own firms.
Despite the lowered expectation of profits, firms are recruiting more sales agents this year, the report found. Simply put more brokers equals more sales and profits, Yun says
Across both residential and commercial firms, 47% of firms reported they are actively recruiting sales agents this year, up from 44% in 2015. The recruitment activity is heavier among residential firms (51%) than commercial firms (32%).
One data point, though, suggests that not all brokers are comfortable with this recruitment. Specifically these brokers — and they were more likely to be on the commercial side — said that they were concerned about too many younger real estate professionals joining the industry. Firms with four or more offices were most concerned with the recruitment of Gen Y and Gen X into the industry at 74%, compared with 59% the previous year.
The lack of a straightforward path to retirement might have something to do with that. Another finding noted that 31% of commercial brokers said they do not plan on retiring compared to 22% of those on the residential side.
WASHINGTON, DC—Commercial brokers and sales agents worry about competition like everyone else—both at the industry level and within their own companies as well. This year, it so happens, there is more competition at the company level to worry about.
That is one of the findings in a new report from the Washington DC-based National Association of Realtors. The report, called 2016 Profile of Real Estate Firms, surveyed a wide universe of both residential and commercial firms.
Now to be clear, the report's overwhelming message was that both commercial and residential shops are optimistic about the industry for 2016.
It found that 67% of commercial real estate firms expect profitability to improve this year. However, that percentage that is down from 75% in 2015. Of course, 67% is still a healthy percentage. The reason companies remain bullish about the industry is that job growth is still increasing, NAR chief economist Lawrence Yun tells GlobeSt.com.
As it turns out, though, sometimes they don't like it growing specifically in their own firms.
Despite the lowered expectation of profits, firms are recruiting more sales agents this year, the report found. Simply put more brokers equals more sales and profits, Yun says
Across both residential and commercial firms, 47% of firms reported they are actively recruiting sales agents this year, up from 44% in 2015. The recruitment activity is heavier among residential firms (51%) than commercial firms (32%).
One data point, though, suggests that not all brokers are comfortable with this recruitment. Specifically these brokers — and they were more likely to be on the commercial side — said that they were concerned about too many younger real estate professionals joining the industry. Firms with four or more offices were most concerned with the recruitment of Gen Y and Gen X into the industry at 74%, compared with 59% the previous year.
The lack of a straightforward path to retirement might have something to do with that. Another finding noted that 31% of commercial brokers said they do not plan on retiring compared to 22% of those on the residential side.
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