There are several strategies and tools that brokers have used over the years to achieve high commercial real estate commissions. From age, income, marketing support, and other factors, there is a lot to consider. Our friends at The Massimo Group recently published a two-part series discussing the eight keys to high commercial real estate commissions. You can read an excerpt of part one below, then click the green button at the bottom of the page to view the full post.
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8 Keys to High Commercial Real Estate Commissions – Part 1
Last week, Linda Day Harrison, creator of the terrific theBrokerList, along with marketing platform provider, Buildout, published their findings from their national commercial real estate survey, The DNA of CRE. If you have not seen it, I highly recommend you review it.
The survey shared several trends and practices of your commercial real estate peers, including support, tenure, social media and yes, commission benchmarks. The team was gracious to share with me the raw data collected, and as such I thought I would dig deeper into the commission data, and see if there are trends that produce the greatest commission income.
In this first of two blogs, we will look at 4 of the 8 keys to higher commercial real estate commission earnings.
Before we dive into the data itself, it is vital that we share characteristics of the data that may, in fact, skew the findings, or more practically, shed light on its direct application to you and your personal business.
Here are several key data points you need to be aware of:
- Several hundred people completed this survey
- All regions of the US were represented, and equally.
- 45% of the respondents were from national firms, with 55% from independent firms.
- 46% hold CCIM designations, 13% held SIOR designations (thus you may assume commissions would be higher than the average)
To keep things simple I recalculated the data, to look at 4 distinct buckets of commission earnings.
- Less than $100,0000
- Between $100,001 and $200,000
- Between $200,001 and $500,000, and
- Greater than $500,000
Based on the data collected, here are the first series of observations.
Age and Income:
Of those surveyed, 23% made less than $100,000 GCI while 16% earned over $500,000 in Gross commission income. For those looking to make over $500,000 GCI, the key earning years seems to be between 40 and 60 years old; representing over 60% of all high earners. If you are in this range, this is your prime earning time. If you are not there, call us now.