One critical differentiator in commercial real estate brokerage is an individual’s focus or specialty. It has always been suggested that in large primary markets, there is enough velocity to focus on not only one product-type, but also one particular service. For example – office sales vs. retail leasing. Where as in tertiary markets, one would need to focus on several product types and provide all services in order to be successful. For example, industrial and office sales and leasing, and potentially management.
However, in our recent survey, The State of Commercial Real Estate Brokerage, of 522 CRE brokers throughout North America, we found over half of the brokers in primary markets indicated they provided both sales and leasing services.
Services Provided by Market Size
Does one’s focus impact one’s income? Based on the survey responses, a higher percentage of income was earned by providing both sales and leasing services. Those earning between $100,000 and $250,000 represents 72% of those offering both services. The smallest segment was those providing just leasing, and earning less than $100,000 (6% of those surveyed). Please note, for particular perspective we excluded those making more than $3M GCI in 2015.
Reported Gross Commission Income by Services Offered