2019 Was A Damn Fine Year To Be A CRE Broker
According to the results of a new nationwide survey, 2019 was a very good year to be a real estate broker, with a benign economy and low interest rates allowing brokers to make more money.
According to a nationwide poll undertaken by Apto, the results of which are revealed exclusively by Bisnow, 58% of brokers said they made more money in 2019 than in 2018, about the same proportion who saw an increase between 2017 and 2018. A further 12% said they brought in about the same amount in 2018 and 2019.
About half (51%) said they completed more transactions than in 2018, which is down from 60% who saw an uptick in deals between 2017 and 2018, while 29% said they completed fewer deals than in 2018, a rise from 26% completing fewer deals in 2018.
The sun is shining for a majority of brokers today, but those surveyed by Apto were more wary about the prospects for 2020, albeit they were still on the whole optimistic.
Of those polled, 70% predict they will make more money in 2020, down from 79% who thought they would make more money at the start of 2019. And 11% predicted they will make less money in 2020, a rise from 6% who thought they would see income drop at the start of 2019.
“The continuing solid macro economy in the U.S. lifted most commercial real estate boats in 2019,” Apto founder Tanner McGraw said. “The sector, including commercial real estate brokers, benefited as interest rates were reduced twice and overall GDP growth stayed positive.
“2020 bodes well for the economy and the commercial real estate sector, though there are jitters over trade, the presidential election and the level of U.S. growth, which drives commercial space absorption and, thus, demand.”
Apto also polled brokers about the prospects for their industry further into the future, and the results unearthed an interesting paradox.
Asked if they expect to be in the real estate business for the rest of their careers, 96% of brokers said yes.
But asked to predict the future of the CRE brokerage profession, 49% said that 10 years from now there will be fewer CRE brokers than today, up from 41% last year.