Daily Real Estate News | September 23, 2009 | Share
REALTORS® specializing in commercial real estate experienced a slowdown in sales transaction volume in 2008, but also reported an increase in commercial leasing volume, according to the 2009 National Association of REALTORS® Commercial Member Profile.
The study’s results represent REALTORS® who practice commercial real estate, a group that comprises more than 81,000 of NAR’s 1.2 million members. The survey shows that the median sales volume in 2008 was down nearly 10 percent since 2006, resulting in a 13.6 percent decline in median income. However; the results also showed a 33-percent increase in commercial leasing volume during the same two-year period.
REALTORS® Commercial Alliance Committee Chair Robert Toothaker said that, despite the fact that commercial real estate activity has suffered, the typical NAR commercial member was doing slightly better than might be expected. “Because most of our members are involved in transactions of under $5 million, the decline in business was not quite as sharp as the drop in investment-grade transactions,” he said. “The flow of funds from regional banks hasn’t slowed as dramatically, leaving some credit available for commercial transactions; however, credit has tightened further in 2009, and continues to curtail commercial real estate lending activity. NAR continues to advocate on behalf of its commercial members to increase liquidity to commercial real estate and ensure overall economic recovery.”
The median number of transactions for REALTORS® practicing commercial real estate in 2008 was eight, unchanged from 2006. Transaction volume for commercial members was $2,024,900 in 2008, down from $2,248,700 in 2006. Sixty-five percent reported a volume greater than $1 million; and nearly a quarter had a transaction volume of $50 million or more in 2008. Leasing volume for commercial members in 2008 was $244,300, slightly higher than the $183,600 reported in 2006.
The median income in 2008 was $99,900, down from $115,600 in 2006. Brokers earned a median of $129,500, while sales agents earned $70,100. Commercial members in the business for two years or less earned a median of $30,200, while those with three to five years of experience earned $63,700. For six to 15 years, the median was $94,700, while members in the business for 16 years or more earned $147,700.
The median dollar value of sales transactions in 2008 was $544,100. The amount was slightly higher among brokers ($629,500) compared to sales agents ($423,500); and varies with experience – those with less than two years experience had a typical sales transaction value of $181,800, well below the $689,900 among those with 16 to 25 years experience. The median square footage of sales transaction in 2008 was 14,000.
Leasing dollar value for commercial members was typically $128,900 in 2008. Commercial members with fewer than two years experience had a typical leasing dollar value of $64,200; those with 16 to 25 years experience had a typical transaction value of $213,200. The median square footage of leasing transactions in 2008 was 4,300.
Most commercial members are compensated on some sort of commission basis. Forty-five percent of commercial members are compensated through a split commission arrangement, 33 percent receive all of the commission, and another 9 percent receive a salary plus a share of the profits.
Three-quarters of NAR’s commercial members bring in 50 percent or more of their annual income from real estate. Income from leasing activity falls well below income from sales. In 2008, 49 percent of commercial members said they received half to all of their income from commercial sales; 19 percent indicated none of their annual income came from commercial sales. Income from leasing was far less, only 24 percent earned half to all of their income from leasing commercial property in 2008; 28 percent earned none of their annual income from leasing.
Fifty-six percent of commercial members said none of their income came from personal commercial real estate investments; only 8 percent made half or more of their income from their personal investment in commercial real estate.
Source: NAR
Wednesday, September 23, 2009
Tuesday, September 22, 2009
From Realtors News
Commercial Prices Continue to Drop
Commercial real estate prices fell 5.1 percent from June to July, according to Moody's/REAL Commercial Property Price Indices.
The index has been sliding steadily compared to last year and is down 30.8 percent compared to July 2008 and 38.7 percent below its peak in October 2007.
The volume of transactions also declined with sales during the first seven months of the year, averaging 375 per month, compared to 1,100 per month in 2008.
Source: The Associated Press (09/22/2009)
Commercial real estate prices fell 5.1 percent from June to July, according to Moody's/REAL Commercial Property Price Indices.
The index has been sliding steadily compared to last year and is down 30.8 percent compared to July 2008 and 38.7 percent below its peak in October 2007.
The volume of transactions also declined with sales during the first seven months of the year, averaging 375 per month, compared to 1,100 per month in 2008.
Source: The Associated Press (09/22/2009)
Wednesday, September 2, 2009
WOW too long
OK, you know it's been a long time when you can't remember your blogger password... YIKES. September hit yesterday, caught me off guard. The past few weeks have been crazy busy with calls, showings, listings. But you'll note, not too much closing going on. I do believe that's around the corner. Whenever the other activities pick up, the closings are traditionally next. Keep your fingers crossed that that doesn't change. Below is something fun I found, so I thought I'd share:
1895 8th grade final exam
Take this test and pass it on to your more literate friends..
What it took to get an 8th grade education in 1895...
Remember when grandparents and great-grandparents stated that they only had an 8th grade education? Well, check this out. Could any of us have passed the 8th grade in 1895?
This is the eighth-grade final exam from 1895 in Salina , Kansas , USA . It was taken from the original document on file at the Smokey Valley Genealogical Society
and Library in Salina , and reprinted by the Salina Journal.
8th Grade Final Exam: Salina , KS - 1895
Grammar (Time, one hour)
1. Give nine rules for the use of capital letters
2. Name the parts of speech and define those that have no modifications.
3. Define verse, stanza and paragraph
4. What are the principal parts of a verb? Give principal parts of 'lie,''play,' and 'run'
5. Define case; illustrate each case.
6 What is punctuation? Give rules for principal marks of punctuation.
7 - 10. Write a composition of about 150 words and show therein that you understand the practical use of the rules of grammar.
Arithmetic (Time,1 hour 15 minutes)
1. Name and define the Fundamental Rules of Arithmetic.
2. A wagon box is 2 ft. Deep, 10 feet long, and 3 ft. Wide. How many bushels of wheat will it hold?
3. If a load of wheat weighs 3,942 lbs., what is it worth at 50cts/bushel, deducting 1,050 lbs. For tare?
4. District No 33 has a valuation of $35,000. What is the necessary levy to carry on a school seven months at $50 per month, and have $104 for incidentals?
5. Find the cost of 6,720 lbs. Coal at $6.00 per ton.
6. Find the interest of $512.60 for 8 months and 18 days at 7 percent.
7. What is the cost of 40 boards 12 inches wide and 16 ft.. Long at $20 per metre?
8. Find bank discount on $300 for 90 days (no grace) at 10 percent.
9. What is the cost of a square farm at $15 per acre, the distance of which is 640 rods?
10. Write a Bank Check, a Promissory Note, and a Receipt
U.S. History (Time, 45 minutes)
1 Give the epochs into which U.S. History is divided
2. Give an account of the discovery of America by Columbus
3. Relate the causes and results of the Revolutionary War.
4. Show the territorial growth of the United States
5. Tell what you can of the history of Kansas
6. Describe three of the most prominent battles of the Rebellion.
7. Who were the following: Morse, Whitney, Fulton , Bell , Lincoln , Penn, and Howe?
8. Name events connected with the following dates: 1607, 1620, 1800, 1849, 1865.
Orthography (Time, one hour)
[Do we even know what this is??]
1. What is meant by the following: alphabet, phonetic, orthography, etymology, syllabication
2. What are elementary sounds? How classified?
3. What are the following, and give examples of each: trigraph, subvocals, diphthong, cognate letters, linguals
4. Give four substitutes for caret 'u.' (HUH?)
5. Give two rules for spelling words with final 'e.' Name two exceptions under each rule.
6. Give two uses of silent letters in spelling. Illustrate each.
7. Define the following prefixes and use in connection with a word: bi, dis-mis, pre, semi, post, non, inter, mono, sup.
8. Mark diacritically and divide into syllables the following, and name the sign that indicates the sound: card, ball, mercy, sir, odd, cell, rise, blood, fare, last.
9. Use the following correctly in sentences: cite, site, sight, fane, fain, feign, vane , vain, vein, raze, raise, rays.
10. Write 10 words frequently mispronounced and indicate pronunciation by use of diacritical marks
and by syllabication.
Geography (Time, one hour)
1 What is climate? Upon what does climate depend?
2. How do you account for the extremes of climate in Kansas ?
3. Of what use are rivers? Of what use is the ocean?
4. Describe the mountains of North America
5. Name and describe the following: Monrovia , Odessa , Denver , Manitoba , Hecla , Yukon , St. Helena, Juan Fernandez, Aspinwall and Orinoco
6. Name and locate the principal trade centers of the U.S. Name all the republics of Europe and give the capital of each.
8. Why is the Atlantic Coast colder than the Pacific in the same latitude?
9. Describe the process by which the water of the ocean returns to the sources of rivers.
10. Describe the movements of the earth. Give the inclination of the earth.
Notice that the exam took FIVE HOURS to complete.
Gives the saying 'he only had an 8th grade education' a whole new meaning, doesn't it?!
Also shows you how poor our education system has become and,
NO, I don't have the answers!
1895 8th grade final exam
Take this test and pass it on to your more literate friends..
What it took to get an 8th grade education in 1895...
Remember when grandparents and great-grandparents stated that they only had an 8th grade education? Well, check this out. Could any of us have passed the 8th grade in 1895?
This is the eighth-grade final exam from 1895 in Salina , Kansas , USA . It was taken from the original document on file at the Smokey Valley Genealogical Society
and Library in Salina , and reprinted by the Salina Journal.
8th Grade Final Exam: Salina , KS - 1895
Grammar (Time, one hour)
1. Give nine rules for the use of capital letters
2. Name the parts of speech and define those that have no modifications.
3. Define verse, stanza and paragraph
4. What are the principal parts of a verb? Give principal parts of 'lie,''play,' and 'run'
5. Define case; illustrate each case.
6 What is punctuation? Give rules for principal marks of punctuation.
7 - 10. Write a composition of about 150 words and show therein that you understand the practical use of the rules of grammar.
Arithmetic (Time,1 hour 15 minutes)
1. Name and define the Fundamental Rules of Arithmetic.
2. A wagon box is 2 ft. Deep, 10 feet long, and 3 ft. Wide. How many bushels of wheat will it hold?
3. If a load of wheat weighs 3,942 lbs., what is it worth at 50cts/bushel, deducting 1,050 lbs. For tare?
4. District No 33 has a valuation of $35,000. What is the necessary levy to carry on a school seven months at $50 per month, and have $104 for incidentals?
5. Find the cost of 6,720 lbs. Coal at $6.00 per ton.
6. Find the interest of $512.60 for 8 months and 18 days at 7 percent.
7. What is the cost of 40 boards 12 inches wide and 16 ft.. Long at $20 per metre?
8. Find bank discount on $300 for 90 days (no grace) at 10 percent.
9. What is the cost of a square farm at $15 per acre, the distance of which is 640 rods?
10. Write a Bank Check, a Promissory Note, and a Receipt
U.S. History (Time, 45 minutes)
1 Give the epochs into which U.S. History is divided
2. Give an account of the discovery of America by Columbus
3. Relate the causes and results of the Revolutionary War.
4. Show the territorial growth of the United States
5. Tell what you can of the history of Kansas
6. Describe three of the most prominent battles of the Rebellion.
7. Who were the following: Morse, Whitney, Fulton , Bell , Lincoln , Penn, and Howe?
8. Name events connected with the following dates: 1607, 1620, 1800, 1849, 1865.
Orthography (Time, one hour)
[Do we even know what this is??]
1. What is meant by the following: alphabet, phonetic, orthography, etymology, syllabication
2. What are elementary sounds? How classified?
3. What are the following, and give examples of each: trigraph, subvocals, diphthong, cognate letters, linguals
4. Give four substitutes for caret 'u.' (HUH?)
5. Give two rules for spelling words with final 'e.' Name two exceptions under each rule.
6. Give two uses of silent letters in spelling. Illustrate each.
7. Define the following prefixes and use in connection with a word: bi, dis-mis, pre, semi, post, non, inter, mono, sup.
8. Mark diacritically and divide into syllables the following, and name the sign that indicates the sound: card, ball, mercy, sir, odd, cell, rise, blood, fare, last.
9. Use the following correctly in sentences: cite, site, sight, fane, fain, feign, vane , vain, vein, raze, raise, rays.
10. Write 10 words frequently mispronounced and indicate pronunciation by use of diacritical marks
and by syllabication.
Geography (Time, one hour)
1 What is climate? Upon what does climate depend?
2. How do you account for the extremes of climate in Kansas ?
3. Of what use are rivers? Of what use is the ocean?
4. Describe the mountains of North America
5. Name and describe the following: Monrovia , Odessa , Denver , Manitoba , Hecla , Yukon , St. Helena, Juan Fernandez, Aspinwall and Orinoco
6. Name and locate the principal trade centers of the U.S. Name all the republics of Europe and give the capital of each.
8. Why is the Atlantic Coast colder than the Pacific in the same latitude?
9. Describe the process by which the water of the ocean returns to the sources of rivers.
10. Describe the movements of the earth. Give the inclination of the earth.
Notice that the exam took FIVE HOURS to complete.
Gives the saying 'he only had an 8th grade education' a whole new meaning, doesn't it?!
Also shows you how poor our education system has become and,
NO, I don't have the answers!
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