Some CRE Brokers Did Surprisingly Well Last Year

Approximately 34% of commercial real estate brokers nationwide made more money in 2020 than the year prior, despite the COVID-19 pandemic and lower overall transaction volume, according to a new survey by CRE broker software company Apto.

Fifty-two percent of brokers made less in 2020 than in 2019, up from 26% who reported lower year-over-year income in the last Apto survey. Thirteen percent made the same money as 2019, a figure that’s virtually unchanged from last year, and one percent say they won’t know their income until bonuses are calculated later this month.

The latest Apto National Broker Buzz Poll also reveals that nearly three-fourths of brokers surveyed expect to make more money in 2021 as the economy begins a slow recovery from coronavirus-related shutdowns and resulting industry disruption. A majority of those surveyed also say that while they miss seeing their colleagues in person, they’ve become more reliant on CRE technology than ever before as a result of the pandemic.

Deal velocity was definitely truncated in 2020, with 57% of brokers reporting they completed fewer transactions in 2020 than in 2019. Twenty-nine percent completed more, while 14% completed the same number of deals.

“It’s expected in our industry that brokers can do well in good times and in bad, whether investors are buying or selling or adding or shedding space,” said Tanner McGraw, himself a former CRE broker and the founder of Apto. “But what made this year so remarkable—aside from the obvious public health crisis—was the near total shut-down of the national economy in many markets for months at a time. In this environment it’s surprising in some ways that anyone made any money. That said, brokers perform a necessary function, dare I call it essential, and the fact is much business got done.”