2013 Commercial Member Profile

National Association of REALTORS
Commercial Member Profile 2013
2013 Officers
President Gary Thomas President-Elect Steve Brown, ABR, CIPS, CRS, GREEN
First Vice President Chris Polychron, CRS, GRI

Treasurer William J. Armstrong, III, GRI Immediate Past President Maurice Moe Veissi Vice President Bill Brown Vice President Leslie Rouda Smith, ABR, CRB, CRS, PMN, e-PRO Chief Executive Officer Dale Stinton, CAE, CPA, CMA, RCE Senior Vice President Janet Branton
NAR Commercial Leadership

2013 Commercial Liaison Jim Helsel, CCIM, SIOR, CPM, CRE, CRB, GRI, AHWD 2013 Commercial Committee Chair Linda St. Peter, CCIM, CIPS, GREEN NAR Commercial Staff Vice President Jan M. Hope, RCE
2013 NAR Commercial Member Profile
NAR RESEARCH STAFF

Office of the Chief Economist Lawrence Yun, Ph.D. Chief Economist and Senior Vice President Caroline Van Hollen Senior Research and Strategic Planning Coordinator Survey and Market Research Paul C. Bishop, Ph.D. Vice President Stephanie Davis Staff Assistant
Ken Fears Manager, Regional Economics and Housing Finance

Danielle Hale Director of Housing Statistics Jessica Lautz Manager, Member and Consumer Survey Research Quantitative Research Jed Smith, Ph.D. Managing Director, Quantitative Research Scholastica Cororaton Research Economist Michael Hyman Research Assistant George Ratiu Manager, Quantitative Commercial Research Hua Zhong Data Analyst Business Operations and Communications Thomas Doyle Director of Research Marketing and Communications Meredith Dunn Research Communications Representative
Highlights
Commercial members of NAR have expertise in a wide variety of transactions across many property types. The 2013 NATIONAL ASSOCIATION OF REALTORS Commercial Member Profile describes the business, demographic and information needs of these members. BUSINESS CHARACTERISTICS OF NAR COMMERCIAL MEMBERS Sixty percent of commercial members reported having a broker license and 25 percent reported having a sales agent license. Thirty-seven percent of respondents are members of any of several commercial affiliated institutes, councils or societies. Investment sales are the most cited primary specialty of commercial members and is the top ranked secondary specialty area. Commercial members typically have been in real estate 25 years, in commercial real estate 15 years, and members of NAR 17 years. BUSINESS ACTIVITIES OF NAR COMMERCIAL MEMBERS Commercial members completed a median of eight transactions in 2012. The median sales transaction volume in 2012 for members who had a transaction was $2,507,700. The median gross leasing volume was $476,400. BUSINESS REVENUE AND FIRM AFFILIATION The median gross annual income of commercial members was $90,200 in 2012. The median gross annual income of commercial members has increased for the past three years. Sixty-three percent of NAR commercial members derived 50 percent or more of their income from all commercial real estate in 2012. Fifty-six percent of members work for a local commercial real estate firm. DEMOGRAPHIC CHARCTERISTICS OF NAR COMMERCIAL MEMBERS The median age of commercial members is 59-years-old. Seventy-eight percent of the practitioners are male. Sixty-five percent of commercial members have a bachelor's degree or higher.
Chapter 1
Sixty percent of NARs commercial members are brokers, with licensed sales agents the next largest segment of membership at 25 percent. Nineteen percent of commercial members have a broker associate license while appraisal license holders accounted for six percent. There are five commercial organizations affiliated with the NATIONAL ASSOCIATION OF REALTORS. They are the CCIM Institute, the Institute of Real Estate Management (IREM), the Society of Industrial and Office REALTORS (SIOR), the REALTORS Land Institute (RLI) and the Counselors of Real Estate (CRE). Sixtythree percent of commercial members reported not being affiliated with any of the groups. Investment sales were identified by the highest proportion of members as their primary business specialty at 27 percent. The areas of land sales and office leasing were the next most frequently mentioned primary commercial real estate specialties. Commercial members cite investment sales and retail leasing most frequently as their secondary business specialty. Land sales ranked third among all commercial members as their secondary business specialty. Commercial members of NAR have a wealth of experience, with the typical practitioner having been in the commercial side of the business for 15 years. The typical commercial member has been involved in real estate in any capacity for 25 years. The median length of membership in NAR among commercial members is 17 years. There are several national and international associations that cater to commercial real estate professionals. One-third of members belong to the International Council of Shopping Centers (ICSC). An additional 11 percent of commercial members belong to The Appraisal Institute and 8 percent to The Urban Land Institute (ULI). Commercial members use a wide variety of information sources when conducting their day-to-day business. Some sources are more popular than others due to cost, accessibility, timeliness and the quality of the data. Seventy-eight percent of members use LoopNet, a California-based online listing service.
BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

Exhibit 1-1 Exhibit 1-2 Exhibit 1-3 Exhibit 1-4 Exhibit 1-5 Exhibit 1-6 Exhibit 1-7 Exhibit 1-8 Exhibit 1-9 Exhibit 1-10 Exhibit 1-11 Exhibit 1-12 Exhibit 1-13 Exhibit 1-14 Exhibit 1-15 Exhibit 1-16 Exhibit 1-17 Exhibit 1-18 NAR'S COMMERCIAL MEMBERS BY TYPE OF LICENSE NAR COMMERCIAL MEMBERS' LICENSE TYPE BY EXPERIENCE NAR COMMERCIAL MEMBERS' LICENSE TYPE BY GENDER NAR COMMERCIAL MEMBERS' LICENSE TYPE BY MEMBERSHIP IN NAR AFFILIATES MEMBERSHIP IN NAR AFFILIATES MEMBERSHIP IN NAR AFFILIATES, BY COMMERCIAL REAL ESTATE EXPERIENCE PRIMARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS PRIMARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS BY LICENSE TYPE PRIMARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS BY GENDER SECONDARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS REAL ESTATE EXPERIENCE OF NAR'S COMMERCIAL MEMBERS BY LICENSE TYPE NAR COMMERCIAL MEMBERS' YEARS OF EXPERIENCE AS COMMERCIAL AGENTS OR BROKERS BY LICENSE TYPE NAR COMMERCIAL MEMBERS' YEARS OF EXPERIENCE AS COMMERCIAL AGENTS OR BROKERS BY MEMBERSHIP IN NAR AFFILIATES REAL ESTATE AND COMMERCIAL REAL ESTATE EXPERIENCES OF NAR'S COMMERCIAL MEMBERS, BY GENDER LENGTH OF MEMBERSHIP IN NATIONAL ASSOCIATION OF REALTORS BY LICENSE TYPE LENGTH OF MEMBERSHIP IN NATIONAL ASSOCIATION OF REALTORS BY MEMBERSHIP IN NAR AFFILIATES MEMBERSHIP IN OTHER NATIONAL/INTERNATIONAL ASSOCIATIONS INFORMATION SOURCES NAR'S COMMERCIAL MEMBERS USE MOST

Exhibit 1-1 NAR'S COMMERCIAL MEMBERS BY TYPE OF LICENSE (Percentage Distribution)
Broker Broker Associate Sales Agent Appraisal
60% 19% 25% 6%
NAR'S COMMERCIAL MEMBERS BY TYPE OF LICENSE

(Percentage
70% 60% 50% 40% 30% 20% 10% 0% Broker Broker Associate Sales Agent Appraisal 19% 6% 25% 60%

Exhibit 1-2 NAR COMMERCIAL MEMBERS' LICENSE TYPE BY EXPERIENCE (Percentage Distribution)
All Commercial Members 60% 19 25 6
Real Estate Experience 2 years 6 to 15 16 to 25 or less 3 to 5 years years years 15% * 85 * 37% 13 54 * 49% 18 39 2 60% 19 26 5
26 years or more 70% 21 12 11
* Less than one percent

Exhibit 1-3 NAR COMMERCIAL MEMBERS' LICENSE TYPE BY GENDER (Percentage Distribution)
Male 63% 19 22 8
Gender Female 53% 20 31 3

Exhibit 1-4 NAR COMMERCIAL MEMBERS' LICENSE TYPE BY MEMBERSHIP IN NAR AFFILIATES (Percentage Distribution) Membership in NAR Affiliates (Designee or Candidate) Society of Certified Industrial Commercial Accredited Certified Institute of Investment All Counselors of Land International and Office Real Estate Not a REALTORS Management Member (CCIM member of Commercial Real Estate Consultant Property (SIOR) Institute) Members (CRE) (RLI) (CIPS) (IREM) any affiliate Broker Broker Associate Sales Agent Appraisal Total Responding 60% 19 25 6 1,796 84% 8 20 20 25 66% 23 16 9 57 55% 19 34 6 86 69% 24 19 2 67 76% 11 14 6 62 68% 22 18 5 394 56% 18 28 7 931

Exhibit 1-5 MEMBERSHIP IN NAR AFFILIATES (Percent of Respondents) Licensed As Broker/ Broker Sales Associate Agent 59% 30 5 5 5 4 2 71% 19 8 2 2 3 1
Not a member of any affiliate Certified Commercial Investment Member (CCIM Institute) Certified International Property (CIPS) Institute of Real Estate Management (IREM) Society of Industrial and Office REALTORS (SIOR) Accredited Land Consultant (ALC) Counselors of Real Estate (CRE)
2013 63% 27 6 5 4 4 2
2012 60% 29 3 7 5 3 2
2011 65% 25 2 7 4 2 2
2010 61% 27 3 6 6 3 2
2009 54% 34 2 8 6 3 3
2007 57% 31 2 7 6 3 3

Exhibit 1-6 MEMBERSHIP IN NAR AFFILIATES, BY COMMERCIAL REAL ESTATE EXPERIENCE (Percent of Respondents) Experience as a Commercial Real Estate Agent or Broker All Commercial 2 years 3 to 5 6 to 15 16 to 25 26 years Members or less years years years or more Not a member of any affiliate Certified Commercial Investment Member (CCIM Institute) Certified International Property (CIPS) Institute of Real Estate Management (IREM) of Industrial and Office Society REALTORS (SIOR) Accredited Land Consultant (ALC) Counselors of Real Estate (CRE) * Less than one percent 63% 27 6 5 4 4 2 91% * * * * 9 * 63% 25 12 2 * 2 * 68% 25 6 3 1 3 1 65% 26 4 3 4 3 2 57% 28 5 6 7 5 2

Exhibit 1-7 PRIMARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS (Percent of Respondents) All PRIMARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS Commercial Investment Sales Land Sales Land Sales Office Leasing Office Leasing Retail Building Sales Retail Leasing Retail Building Sales Office Building Sales Multi-family Building SalesRetail Leasing Industrial Building Sales Industrial Leasing Office Building Sales Commercial Property Management Multi-family Building Sales Consulting Development Industrial Building Sales Multi-family Property Management Commercial Appraisal Industrial Leasing Hospitality/Resort Sales Commercial Auctions Commercial Property Management Other
Investment Sales
Consulting
Members 27% 26 25 21 21 20 18 17 15 12 10 8 6 5 4 1 12
27% 26% 25% 21% 21% 20% 18% 17% 15% 12% 10% 8% 6% 5%
Development
Multi-family Property Management Commercial Appraisal Hospitality/Resort Sales Commercial Auctions Other
1%
12% 0 5 10 15 20 25 30

Exhibit 1-8 PRIMARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS BY LICENSE TYPE (Percent of Respondents) All Commercial Members 27% 26 25 21 21 20 18 17 15 12 10 8 6 5 4 1 12 Licensed As Broker Sales Associate Agent 30% 26% 32 24 27 27 24 23 20 25 24 22 21 18 24 18 22 15 8 9 9 6 8 6 2 5 1 1 5 5 1 1 10 12
Investment Sales Land Sales Office Leasing Retail Building Sales Retail Leasing Office Building Sales Multi-family Building Sales Industrial Building Sales Industrial Leasing Commercial Property Management Consulting Development Multi-family Property Management Commercial Appraisal Hospitality/Resort Sales Commercial Auctions Other * Less than one percent
Broker 27% 26 26 20 21 19 18 15 15 15 11 10 9 1 3 1 12
Appraiser 14% 13 7 13 9 14 6 7 2 8 19 6 3 60 2 * 9

Exhibit 1-9 PRIMARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS BY GENDER (Percent of Respondents) All Commercial Members 27% 26 25 21 21 20 18 17 15 12 10 8 6 5 4 1 12
Gender Male Female 27% 25 24 21 21 20 17 18 16 10 11 8 6 6 4 1 11 24% 27 25 17 20 17 18 12 11 13 5 6 7 3 5 * 13
Investment Sales Land Sales Office Leasing Retail Building Sales Retail Leasing Office Building Sales Multi-family Building Sales Industrial Building Sales Industrial Leasing Commercial Property Management Consulting Development Multi-family Property Management Commercial Appraisal Hospitality/Resort Sales Commercial Auctions Other * Less than one percent

Exhibit 1-10 SECONDARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS (Percent of Respondents) All SECONDARY BUSINESS SPECIALTY OF NAR'S COMMERCIAL MEMBERS Commercial Investment Sales Retail Leasing Retail Leasing Land Sales Land Sales Office Leasing Office Building Sales Office Leasing Multi-family Building Sales Retail Building Sales Office Building Sales Consulting Multi-family Building Sales Industrial Building Sales Industrial Leasing Retail Building Sales Commercial Property Management Development Consulting Multi-family Property Management Industrial Building Sales Hospitality/Resort Sales Commercial Appraisal Industrial Leasing Commercial Auctions Other Commercial Property Management
Development Multi-family Property Management Hospitality/Resort Sales Commercial Appraisal Commercial Auctions Other 0 5 1% 9% 10 15 20 3% 5% Investment Sales
Members 14% 14 14 13 12 11 11 10 10 8 8 8 5 3 2 1 9
14% 14% 14% 13% 12% 11% 11% 10% 10% 8% 8% 8%

Exhibit 1-11 REAL ESTATE EXPERIENCE OF NAR'S COMMERCIAL MEMBERS BY LICENSE TYPE (Percentage Distribution) NAR's Commercial Members * 1 1 1 2 16 12 22 34 11 25 Licensed As Broker Sales Associate Agent * 1% * 2 1 2 1 3 1 5 14 30 13 15 22 23 38 18 11 2 31 13
1 year or less 2 years 3 years 4 years 5 years 6 to 10 years 11 to 15 years 16 to 25 years 26 to 39 years 40 or more years Median (years)
Broker * * * 1 2 12 12 22 38 14 25
Appraiser * * * * * 3 6 16 51 24 31

Exhibit 1-12 NAR COMMERCIAL MEMBERS' YEARS OF EXPERIENCE AS COMMERCIAL AGENTS OR BROKERS BY LICENSE TYPE (Percentage Distribution) All Commercial Members 4% 2 3 3 6 21 14 21 21 5 15 Licensed As Broker Sales Associate Agent 2% 1 4 3 6 21 14 23 21 5 15 7% 6 5 6 10 28 15 17 8 * 8
Broker 2% 1 3 3 5 18 15 21 25 7 18
Appraiser 15% * 1 1 1 13 7 23 32 6 20

Exhibit 1-13 NAR COMMERCIAL MEMBERS' YEARS OF EXPERIENCE AS COMMERCIAL AGENTS OR BROKERS BY MEMBERSHIP IN NAR AFFILIATES (Percentage Distribution) Membership in NAR Affiliates (Designee or Candidate) Certified Society of Accredited International Industrial All Counselors Land Property and Office Commercial of Real Consultant Specialists REALTORS Members Estate (CRE) (RLI) (CIPS) (SIOR) 1 year or less 2 years 3 years 4 years 5 years 6 to 10 years 11 to 15 years 16 to 25 years 26 to 39 years 40 or more years Median (years) * Less than one percent 4% 2 3 3 6 21 14 21 21 5 15 * * * * * 16 12 24 32 16 25 2% 2 4 4 2 15 18 18 26 11 20 4% * 7 5 10 23 13 19 14 6 12 * 2 * * 2 3 10 23 47 15 27 Certified Institute of Not a Commercial Real Estate member Investment Management Member (CCIM of any (IREM) affiliate Institute) 2% * 2 5 * 12 12 18 39 12 26 * 1 2 2 5 20 18 22 25 6 18 5% 3 3 4 6 23 14 20 19 4 13

Exhibit 1-14 REAL ESTATE AND COMMERCIAL REAL ESTATE EXPERIENCES OF NAR'S COMMERCIAL MEMBERS, BY GENDER (Percentage Distribution) EXPERIENCE AS COMMERCIAL AGENT OR BROKER Male 3% 2 3 4 5 19 14 22 23 7 16 Female 6% 3 4 2 7 26 17 20 14 2 11
REAL ESTATE EXPERIENCE Male 1 year or less 2 years 3 years 4 years 5 years 6 to 10 years 11 to 15 years 16 to 25 years 26 to 39 years 40 or more years Median (years) * * 1 1 1 14 11 22 37 12 25 Female * 1 2 1 2 19 13 23 32 7 21

Exhibit 1-15 LENGTH OF MEMBERSHIP IN NATIONAL ASSOCIATION OF REALTORS BY LICENSE TYPE (Percentage Distribution) NAR's Commercial Members 1% 2 2 3 4 22 16 23 24 6 17 Licensed As Broker Sales Associate Agent * 1% 1 3 2 4 3 6 3 6 19 33 16 16 25 22 24 9 6 1 18 10
Broker * 1 2 2 3 18 16 23 28 7 20
Appraiser * 1 * * 3 19 10 19 35 14 25

Exhibit 1-16 LENGTH OF MEMBERSHIP IN NATIONAL ASSOCIATION OF REALTORS BY MEMBERSHIP IN NAR AFFILIATES (Percentage Distribution) Membership in NAR Affiliates (Designee or Candidate) Certified Society of Certified Accredited International Industrial and Institute of Commercial Land Property Office Real Estate Investment Counselors Not a Consultant Specialists REALTORS Management Member (CCIM member of of Real (RLI) (CIPS) (SIOR) (IREM) Institute) Estate (CRE) any affiliate * * * 5 * 24 5 33 24 10 20 2% 6 2 4 4 31 21 8 10 10 10 4% 4 3 3 12 27 15 19 10 4 10 2% 2 2 * 5 16 21 21 27 4 16 6% 5 * 3 2 19 6 29 22 8 20 5% 4 4 6 5 27 15 17 13 3 10 34% 2 2 1 5 16 12 15 11 2 7
All Commercial Members 1% 2 2 3 4 22 16 23 24 6 17

Exhibit 1-17 MEMBERSHIP IN OTHER NATIONAL/INTERNATIONAL ASSOCIATIONS (Percent of Respondents) 2013 33% 11 8 8 6 5 4 4 3 2 2 2 1 1 1 * * * 42 2012 45% 16 13 15 12 8 8 3 3 2 4 3 1 2 * * 1 * 10 2011 37% 18 13 16 13 7 10 3 6 3 4 3 1 1 2 * 1 2 50 2010 37% 20 16 12 13 10 NA 7 3 NA 7 6 NA NA * 1 NA 5 12 2009 14% 5 4 6 5 2 NA NA 1 NA 1 NA NA NA 1 NA NA 5 41 2007 33% 9 8 9 11 5 NA NA 3 NA 1 NA NA NA 1 NA NA 11 34
International Council of Shopping Centers (ICSC) The Appraisal Institute The Urban Land Institute (ULI) Building Owners and Managers Association (BOMA) National Association of Industrial & Office Properties (NAIOP) CREW Network U.S. Green Building Council (USGBC) The International Real Estate Federation (FIABCI) CoreNet Global American Hotel and Lodging Association (AHLA) National Multi-Housing Council (NMHC) Royal Institution of Chatered Surveryors (RICS) Association of Foreign Investors in Real Estate (AFIRE) American Resort Development Association (ARDA) International Facilities Management Association (IFMA) American College of Real Estate Lawyers (ACREL) The American Institute of Architects (AIA) None Other * Less than one percent NA=Data not available
BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS

Exhibit 1-18 INFORMATION SOURCES NAR'S COMMERCIAL MEMBERS USE MOST (Percent of Respondents) All Commercial Members 78% 48 40 26 18 16 15 13 13 6 6 5 5 4 3 * * 15
LoopNet NAR CoStar In-House Research CCIM/Net Catalyst CommercialSource.com Local CIE REIS Xceligent Real Capital Analytics CIMLS CBRE Econometrics Advisors (formerly TWR) Property Portfolio Research Real Estate Research Corporation COMMREX Plunkett Research Rosen Consulting Group Other * Less than one percent
Chapter 2
The median number of transactions for commercial specialists was eight in 2012. The median transaction volume in 2012 among members who had a transaction was $2,507,700. Nine percent of commercial members reported not having a transaction. Brokers typically had a higher sales transaction volume than sales agents. Experience in both commercial real estate and real estate overall also plays a factor in the sales transaction volume. The median transaction leasing volume in 2012 among members who had a leasing transaction was $476,400. Twenty-one percent of commercial members reported not having a leasing transaction.
The median dollar value of sales transactions in 2011 was $433,600. The median leasing dollar value for commercial members in 2012 was $169,100. The median square footage of sales transactions in 2012 was 10,400. Leasing transactions were typically 4,200 square feet.
Commercial members who manage properties typically managed 40,000 total square feet, representing 15 total spaces. Commercial members typically managed 16,000 total office square feet, representing six total offices. Seventy-three percent of all commercial members had no international transactions in 2012. However, 16 percent of commercial members reported an increase in international transactions, while only one percent had a decrease. About onequarter of commercial members reported international business was at least important to their company. Commercial members are familiar with tenant-in-common (TIC) transactions, and while 77 percent of them have not participated in such transactions, 26 percent indicated that they plan to engage in a TIC deal in the future.

Exhibit 2-1 Exhibit 2-2 Exhibit 2-3 Exhibit 2-4 Exhibit 2-5 Exhibit 2-6 Exhibit 2-7 Exhibit 2-8 Exhibit 2-9 Exhibit 2-10 Exhibit 2-11 Exhibit 2-12 Exhibit 2-13 Exhibit 2-14 Exhibit 2-15 Exhibit 2-16 NUMBER OF COMMERCIAL TRANSACTIONS, 2012 NUMBER OF COMMERCIAL TRANSACTIONS, 2012, BY EXPERIENCE SALES TRANSACTION VOLUME IN 2012-2006, BY LICENSE TYPE SALES TRANSACTION VOLUME IN 2012, BY EXPERIENCE TYPICAL DOLLAR VALUE OF SALES TRANSACTIONS IN 2012, BY LICENSE TYPE TYPICAL DOLLAR VALUE OF SALES TRANSACTIONS IN 2012, BY EXPERIENCE TYPICAL SIZE (IN SQUARE FEET) OF SALES TRANSACTIONS IN 2012, BY LICENSE TYPE LEASE TRANSACTION VOLUME (GROSS LEASE DOLLARS) 2012-2006, BY LICENSE TYPE TYPICAL DOLLAR VALUE PER LEASING TRANSACTION IN 2012, BY LICENSE TYPE TYPICAL DOLLAR VALUE PER LEASING TRANSACTION IN 2012, BY EXPERIENCE TYPICAL SIZE (IN SQUARE FEET) OF LEASING TRANSACTIONS IN 2012, BY LICENSE TYPE TYPICAL OFFICE SPACE MANAGED, AMONG MEMBERS WHO MANAGE PROPERTIES INTERNATIONAL COMMERCIAL TRANSACTIONS, 2012, BY LICENSE TYPE INTERNATIONAL COMMERCIAL TRANSACTIONS, 2012, BY MEMBERSHIP IN NAR AFFILIATES IMPORTANCE OF INTERNATIONAL BUSINESS TO COMPANY PARTICIPATION IN TENANT-IN-COMMON (TIC) TRANSACTIONS, BY LICENSE TYPE
Exhibit 2-17 PARTICIPATION IN TENANT-IN-COMMON (TIC) TRANSACTIONS, BY MEMBERSHIP IN NAR AFFILIATES

Exhibit 2-1 NUMBER OF COMMERCIAL TRANSACTIONS, 2012 (Percentage Distribution)
None 1 to 4 5 to 9 10 to 14 15 to 19 20 or more Median (transactions)
All Commercial Members 8% 29 22 14 9 19 8
Licensed As Broker Sales Broker Associate Agent 6% 29 22 12 10 20 8 5% 25 25 17 8 19 8 10% 30 21 14 9 15 7

Exhibit 2-2 NUMBER OF COMMERCIAL TRANSACTIONS, 2012, BY EXPERIENCE (Percentage Distribution) Experience as a Commercial Real Estate Agent or Broker All 6 to 15 16 to 25 26 years Commercial 2 years or 3 to 5 less years years years or more Members 8% 18% 4% 10% 8% 7% 29 55 44 30 28 26 22 9 14 23 22 22 14 18 17 12 14 15 9 * 10 8 7 11 19 * 12 18 22 20 8 3 6 7 8 8
None 1 to 4 5 to 9 10 to 14 15 to 19 20 or more Median (transactions) * Less than one percent

Exhibit 2-3 SALES TRANSACTION VOLUME IN 2012-2006, BY LICENSE TYPE (Percentage Distribution)
Less than $100,000 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 to $4,999,999 $5,000,000 or more No transactions Median (including those with "no transactions") Median (excluding those with "no transactions")
2012 7% 5 8 9 14 27 21 9
2011 8% 5 5 10 12 23 17 22
2010 9% 5 8 10 16 23 15 15
2009 8% 6 7 9 13 24 14 19
2008 18% 4 5 7 15 26 24 NA NA
2006 15% 4 5 7 17 17 35 NA NA
Broker 6% 5 8 7 13 26 23 11
Licensed As Broker Associate 4% 4 8 9 19 31 20 5
Sales Agent 12% 5 6 12 14 25 18 8
$1,857,100 $1,058,300 $1,282,100 $1,067,000
$1,939,800 $2,095,600 $1,466,700 $3,259,500 $2,818,200 $1,782,300
$2,507,700 $2,010,500 $1,722,200 $1,767,900 $2,024,900 $2,248,700

Exhibit 2-4 SALES TRANSACTION VOLUME IN 2012, BY EXPERIENCE (Percentage Distribution) Experience as a Commercial Real Estate Agent or Broker 26 years or more 6% 5 8 6 13 30 23 9 2 years or less 20% 5 11 13 13 11 4 25 3 to 5 years 7% 5 11 11 15 22 16 12 6 to 15 years 6% 5 7 10 14 29 20 8 16 to 25 26 years or years more 9% 5 6 8 16 28 21 7 5% 4 8 6 13 27 27 10
Real Estate Experience 2 years or less Less than $100,000 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 to $4,999,999 $5,000,000 or more No transactions Median (including those with "no transactions") Median (excluding those with "no transactions") 40% 10 0 10 30 0 0 10 3 to 5 years 6% 4 20 14 12 18 18 6 6 to 15 years 8% 6 6 10 15 25 20 11 16 to 25 years 8% 3 9 12 16 23 20 9
$100,000 $965,000 $1,631,600 $1,583,900 $2,212,600 $250,000 $1,264,900 $1,951,400 $1,926,400 $2,307,700 $175,700 $1,176,900 $1,988,200 $1,858,000 $3,757,100 $571,900 $1,651,200 $2,728,600 $2,538,500 $4,000,000

Exhibit 2-5 TYPICAL DOLLAR VALUE OF SALES TRANSACTIONS IN 2012, BY LICENSE TYPE (Percentage Distribution) All Commercial Members Less than $100,000 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 to $4,999,999 $5,000,000 or more Median 9% 21 27 23 10 7 3 $433,600 Licensed As Broker 8% 18 28 24 10 9 3 $461,800 Broker Associate 7% 29 26 22 10 3 4 $393,100 Sales Agent 13% 18 28 22 11 7 2 $419,400

Exhibit 2-6 TYPICAL DOLLAR VALUE OF SALES TRANSACTIONS IN 2012, BY EXPERIENCE (Percentage Distribution) Experience as a Commercial Real Estate Agent or Broker 2 years or less 17% 29 24 20 5 5 * $286,900 3 to 5 years 8% 29 31 18 8 4 2 $356,300 6 to 15 years 11% 20 28 22 11 7 2 $427,700 16 to 25 26 years or years more 9% 19 28 23 11 9 2 $455,200 7% 19 25 25 11 8 5 $489,900
All Commercial Members Less than $100,000 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 to $4,999,999 $5,000,000 or more Median * Less than one percent 9% 21 27 23 10 7 3 $433,600

Exhibit 2-7 TYPICAL SIZE (IN SQUARE FEET) OF SALES TRANSACTIONS IN 2012, BY LICENSE TYPE (Percentage Distribution)
All Commercial Members 5,000 or less 5,000 to 24,999 25,000 to 49,999 50,000 to 99,999 100,000 to 249,999 250,000 to 499,999 500,000 to 999,999 1,000,000 or more Median 40% 37 9 7 4 2 1 2 10,400
Licensed As Broker 37% 37 10 8 4 1 * 3 12,000 Broker Associate 43% 37 7 7 3 3 1 * 9,100 Sales Agent 44% 37 7 4 2 2 2 2 8,200

Exhibit 2-8 LEASE TRANSACTION VOLUME (GROSS LEASE DOLLARS) 2012-2006, BY LICENSE TYPE (Percentage Distribution) Licensed As 2009 2008 2006 2012 2011 2010 Less than $100,000 18% 17% 24% 18% 39% 45% $100,000 to $249,999 12 11 11 9 12 12 $250,000 to $499,999 10 8 9 6 11 11 $500,000 to $999,999 11 8 8 7 11 9 $1,000,000 to $1,999,999 10 8 7 7 9 9 $2,000,000 to $4,999,999 11 9 7 7 10 7 $5,000,000 or more 7 6 6 4 8 8 No transactions 21 34 25 42 NA NA Median (including those with "no transactions") $230,500 $93,100 $118,400 $45,000 NA NA Median (excluding those with "no transactions") $476,400 $402,100 $145,000 $330,200 $244,300 $183,300 Note: For multi-year lease terms, respondents included the total multi-year lease value. E.g., 3 year lease that is $500,000 per year, should be recorded as $1,500,000. Broker 17% 13 9 11 10 13 7 20 Broker Associate 19% 13 12 9 10 11 5 21 Sales Agent 20% 9 12 12 11 7 7 22
$245,300 $219,800 $226,100 $552,200 $402,900 $453,900

Exhibit 2-9 TYPICAL DOLLAR VALUE PER LEASING TRANSACTION IN 2012, BY LICENSE TYPE (Percentage Distribution) Licensed As All Commercial Members Less than $100,000 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 to $4,999,999 $5,000,000 or more Median 38% 27 17 10 5 2 1 $169,100 Broker 37% 24 19 12 5 2 1 $185,800 Broker Associate Sales Agent 38% 41% 34 27 15 15 7 8 3 6 2 3 1 2 $154,600 $153,400

Exhibit 2-10 TYPICAL DOLLAR VALUE PER LEASING TRANSACTION IN 2012, BY EXPERIENCE (Percentage Distribution) Experience as a Commercial Real Estate Agent or Broker 2 years or less 3 to 5 years 6 to 15 years 16 to 25 26 years or years more
All Commercial Members Less than $100,000 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $999,999 $1,000,000 to $1,999,999 $2,000,000 to $4,999,999 $5,000,000 or more Median * Less than one percent 38% 27 17 10 5 2 1 $169,100
71% 53% 41% 31% 28% 14 24 26 28 28 10 14 18 20 16 * 4 9 11 14 * 2 4 5 8 5 1 1 3 4 * 2 1 2 1 $70,000 $93,600 ####### $200,900 $216,200

Exhibit 2-11 TYPICAL SIZE (IN SQUARE FEET) OF LEASING TRANSACTIONS IN 2012, BY LICENSE TYPE (Percentage Distribution) All Commercial Members 5,000 or less 5,000 to 24,999 25,000 to 49,999 50,000 to 99,999 100,000 to 249,999 250,000 to 499,999 500,000 to 999,999 1,000,000 or more Median * Less than one percent 60% 31 5 2 1 * * * 4,200 Licensed As Broker 59% 31 6 3 1 * * * 4,300 Broker Associate 57% 39 2 1 1 * * * 4,400 Sales Agent 62% 29 5 3 1 1 * 1 4,100

Exhibit 2-12 TYPICAL OFFICE SPACE MANAGED, AMONG MEMBERS WHO MANAGE PROPERTIES (Medians) All Commercial Members Total typical square feet managed Total typical number of spaces managed Total typical office square feet managed Total typical number of offices managed 40,000 15 16,000 6

Exhibit 2-13 INTERNATIONAL COMMERCIAL TRANSACTIONS, 2012, BY LICENSE TYPE (Percentage Distribution) LICENSED AS All Commercial Members 73% 16 10 1 Broker 77% 13 8 2 Broker Associate 66% 21 12 1 Sales Agent 63% 23 13 1 Appraisal 88% 6 5 1
No international transactions An increase in international transactions from previous year About the same A decrease in international transactions from previous year * Less than one percent

Exhibit 2-14 INTERNATIONAL COMMERCIAL TRANSACTIONS, 2012, BY MEMBERSHIP IN NAR AFFILIATES (Percentage Distribution) Membership in NAR Affiliates (Designee or Candidate) Certified Society of Certified Commercial Counselors Accredited International Industrial Institute of Not a Property and Office Real Estate Investment of Real Land member All Specialists REALTORS Management Member (CCIM of any Estate Consultant Commercial (CIPS) (SIOR) Institute) (CRE) (RLI) (IREM) affiliate Members No international transactions An increase in international transactions from previous year About the same A decrease in international transactions from previous year * Less than one percent 73% 16 10 1 80% 8 12 * 63% 28 9 * 59% 25 13 2 59% 25 16 * 77% 17 6 * 68% 19 12 1 75% 15 9 2

Exhibit 2-15 IMPORTANCE OF INTERNATIONAL BUSINESS TO COMPANY (Percentage Distribution)
All Commercial Members Extremely important Important Neutral Unimportant Not important at all 6% 18 34 11 32

Exhibit 2-16 PARTICIPATION IN TENANT-IN-COMMON (TIC) TRANSACTIONS, BY LICENSE TYPE (Percentage Distribution) LICENSED AS All Commercial Members Have completed a TIC transaction Have not completed a TIC transaction Plan on completing a TIC transaction in the future Do not plan on completing a TIC transaction in the future 23% 77 26% Broker 27% 73 27% Broker Associate 17% 83 26% Sales Agent 17% 83 23% Appraisal 24% 76 27%
74
73
74
77
73

Exhibit 2-17 PARTICIPATION IN TENANT-IN-COMMON (TIC) TRANSACTIONS, BY MEMBERSHIP IN NAR AFFILIATES (Percentage Distribution) Membership in NAR Affiliates (Designee or Candidate) Society of Counselors Accredited Certified Institute of Certified Not a Industrial and of Real Land International Real Estate Commercial member Office All Estate Consultant Property Management Investment Member of any REALTORS Commercial (CRE) (RLI) Specialists (CIPS) (IREM) (CCIM Institute) affiliate (SIOR) Members Have completed a TIC transaction Have not completed a TIC Plan on completing a TIC transaction in the future Do not plan on completing a TIC transaction in the future 23% 77 26% 55% 46 29% 34% 66 37% 28% 72 38% 27% 74 20% 27% 73 36% 28% 72 28% 20% 80 23%
74
71
63
62
80
64
72
77
Chapter 3
Commercial members had an annual gross income in 2012 of $90,200. The annual income of commercial members is at its highest reported level since 2008. Brokers and appraisers tend to report the highest median annual incomes, while sales agents report the lowest among licensees. Those with less than two years of experience reported a median annual income of $35,400, while those with more than 26 years of experience reported a median annual income of $123,700. Eighty-three percent of commercial members reported working at least 40 hours a week. About half of commercial members spend 75 to 100 percent of their time on commercial real estate activity.
Most commercial members are compensated on a commission basis. The most prevalent form of compensation is the percentage split commission, whereby the commission is split between the sales/leasing representative and the broker or brokers office.
Sixty-three percent of NARs commercial members derive 50 percent or more of their annual income from the real estate industry. Thirty percent of respondents did not derive income from commercial real estate leasing in 2012. Only 23 percent derived at least half to all of their income from leasing property in 2012. A total of 46 percent of commercial members derived 50 percent or more of their income in 2012 from the sale of real estate. The majority56 percentof commercial members reported working in a firm that is local. Thirty-one percent of commercial members work in an area with a population base of 249,999 or less, while 24 percent of commercial members work in an area where the population base is 2,000,000 or more people. Thirtyfour percent work in offices that employ only commercial brokers and/or agents. Fifty-eight percent work within an office that has a mix of commercial and residential brokers/agents. Eighty-five percent of commercial members earned some personal income from commercial real estate investments. Twenty percent of commercial members made at least 50 percent of their personal income from their personal investment in commercial real estate.
Business Revenue and Firm Affiliation

INCOME FROM REAL ESTATE ACTIVITIES--ANNUAL GROSS PERSONAL INCOME, 2012-2006, BY LICENSE TYPE INCOME FROM REAL ESTATE ACTIVITIES--ANNUAL GROSS PERSONAL INCOME, 2012, BY GENDER, EXPERIENCE, AND WORK HOURS INCOME FROM REAL ESTATE ACTIVITIES--ANNUAL GROSS PERSONAL INCOME, 2012, BY MEMBERSHIP IN NAR AFFILATES HOURS WORKED PER WEEK, BY LICENSE TYPE HOURS WORKED PER WEEK, BY LICENSE TYPE, BY GENDER AND EXPERIENCE TIME SPENT ON COMMERCIAL REAL ESTATE ACTIVITY, BY LICENSE TYPE TIME SPENT ON COMMERCIAL REAL ESTATE ACTIVITY, BY GENDER AND EXPERIENCE COMPENSATION STRUCTURES FOR NAR'S COMMERCIAL MEMBERS, 2012, BY LICENSE TYPE COMPENSATION STRUCTURES FOR NAR'S COMMERCIAL MEMBERS, 2012, BY GENDER AND EXPERIENCE
Exhibit 3-1 Exhibit 3-2 Exhibit 3-3 Exhibit 3-4 Exhibit 3-5 Exhibit 3-6 Exhibit 3-7 Exhibit 3-8 Exhibit 3-9
Exhibit 3-10 COMPENSATION STRUCTURES FOR NAR'S COMMERCIAL MEMBERS, 2012, NAR MEMBER AFFILIATES Exhibit 3-11 SHARE OF ANNUAL INCOME FROM ALL TYPES OF COMMERCIAL ACTIVITIES, 2012, BY LICENSE TYPE SHARE OF ANNUAL INCOME FROM ALL TYPES OF COMMERCIAL ACTIVITIES, 2012, BY GENDER AND Exhibit 3-12 EXPERIENCE Exhibit 3-13 SHARE OF ANNUAL INCOME FROM COMMERCIAL SALES ACTIVITY, 2012, BY LICENSE TYPE Exhibit 3-14 SHARE OF ANNUAL INCOME FROM COMMERCIAL SALES ACTIVITY, 2012, BY GENDER AND EXPERIENCE Exhibit 3-15 SHARE OF ANNUAL INCOME FROM COMMERCIAL LEASING ACTIVITY, 2012, BY LICENSE TYPE SHARE OF ANNUAL INCOME FROM COMMERCIAL LEASING ACTIVITY, 2012, BY GENDER AND Exhibit 3-16 EXPERIENCE SHARE OF ANNUAL INCOME FROM COMMERCIAL PROPERTY MANAGEMENT ACTIVITY, 2012, BY LICENSE Exhibit 3-17 TYPE SHARE OF ANNUAL INCOME FROM COMMERCIAL PROPERTY MANAGEMENT, 2012, BY GENDER AND Exhibit 3-18 EXPERIENCE Exhibit 3-19 COMMERCIAL FIRM AFFILIATION Exhibit 3-20 FIRM CHARACTERISTICS, BY LICENSE TYPE Exhibit 3-21 FIRM COMPOSITION, BY LICENSE TYPE NUMBER OF ACTIVE COMMERCIAL SALES/LEASING AGENTS OR BROKERS, OR PROPERTY MANAGEMENT Exhibit 3-22 PROFESSIONALS IN THE FIRM, BY LICENSE TYPE Exhibit 3-23 POPULATION BASE FOR THE MARKET OFFICE PRACTICED, BY LICENSE TYPE PERSONAL INVESTMENT IN COMMERCIAL REAL ESTATE AS A PERCENTAGE OF PERSONAL INCOME IN Exhibit 3-24 2012, BY LICENSE TYPE

Exhibit 3-1 INCOME FROM REAL ESTATE ACTIVITIES--ANNUAL GROSS PERSONAL INCOME, 2012-2006, BY LICENSE TYPE (Percentage Distribution) LICENSED AS Broker Sales Broker Associate Agent Appraisal 2012 2011 2010 2009 2008 2006 12% 14% 19% 23% 13% 11% 11% 11% 18% 4% 13 15 16 16 12 11 12 11 21 8 31 29 30 28 25 24 28 38 29 32 32 30 28 23 34 33 35 30 26 41 9 9 6 7 12 13 10 7 6 11 2 2 2 2 3 5 3 3 * 3 1 1 1 * 1 2 2 * * 1 $90,200 $86,000 $76,500 $68,600 $99,900 $115,600 $98,900 $86,400 $69,900 $120,000
Less than $25,000 $25,000 to $49,999 $50,000 to $99,999 $100,000 to $249,999 $250,000 to $499,999 $500,000 to $1,000,000 More than $1,000,000 Median *Less than one percent

Exhibit 3-2 INCOME FROM REAL ESTATE ACTIVITIES--ANNUAL GROSS PERSONAL INCOME, 2012, BY GENDER, EXPERIENCE, AND WORK HOURS (Percentage Distribution) Experience as a Commercial Real Estate Agent or Broker 2 years 3 to 5 6 to 15 16 to 25 26 years or less years years years or more 42% 19% 12% 6% 7% 19 20 14 11 11 19 32 30 37 27 17 26 33 35 37 3 3 8 10 12 * 1 2 1 5 * 1 1 * 2 $35,400 $68,200 $90,400 $94,700 $123,700
GENDER All Commercial Male Female Members 12% 11% 15% 13 12 19 31 29 37 32 35 24 9 10 3 2 2 2 1 1 * $90,200 $96,700 $72,200
WORK HOURS Less than 20 to 39 40 to 59 60 hours 20 hours hours hours or more 64% 31% 8% 4% 14 19 12 12 14 32 32 26 9 12 38 34 * 5 7 17 * 1 1 5 * 1 1 1 $19,700 $50,500 $96,800 $132,700

Exhibit 3-3 INCOME FROM REAL ESTATE ACTIVITIES--ANNUAL GROSS PERSONAL INCOME, 2012, BY MEMBERSHIP IN NAR AFFILATES (Percentage Distribution)
All Commercial Members 12% 13 31 32 9 2 1 $90,200
Counselors of Real Estate (CRE) 0% 6 18 41 35 * * $196,500
Membership in NAR Affiliates (Designee or Candidate) Society of Certified Accredited Certified Industrial and Institute of Commercial Land International Office Real Estate Investment Consultant Property REALTORS Management Member (CCIM (RLI) Specialists (CIPS) (SIOR) (IREM) Institute) 7% 5 42 28 14 5 * $95,700 28% 8 30 22 8 3 * $72,300 0% 7 11 42 24 11 4 $214,500 5% 5 21 60 5 2 2 $146,100 5% 9 27 43 13 3 2 $133,900
Not a member of any affiliate 15% 17 32 28 7 1 1 $79,300

Exhibit 3-4 HOURS WORKED PER WEEK, BY LICENSE TYPE (Percentage Distribution)
Less than 20 hours 20 to 39 hours 40 to 59 hours 60 hours or more
Broker 2% 14 60 24
LICENSED AS Broker Sales Associate Agent 1% 17 59 22 2% 23 59 16
Appraisal 1% 2 60 37

Exhibit 3-5 HOURS WORKED PER WEEK, BY LICENSE TYPE, BY GENDER AND EXPERIENCE (Percentage Distribution) Experience as a Commercial Real Estate Agent or Broker 2 years or less 6% 11 59 24 3 to 5 years 3% 23 58 17 6 to 15 16 to 25 26 years years years or more 2% 1% 2% 15 16 14 58 62 60 24 20 24
Less than 20 hours 20 to 39 hours 40 to 59 hours 60 hours or more
GENDER Male 2% 13 63 23 Female 3% 24 51 22

Exhibit 3-6 TIME SPENT ON COMMERCIAL REAL ESTATE ACTIVITY, BY LICENSE TYPE (Percentage Distribution)
None 1 to 24% 25 to 49% 50 to 74% 75 to 100%
All Commercial Members 2% 14 13 19 52
LICENSED AS Broker 2% 15 11 18 54 Broker Associate 3% 15 13 20 50 Sales Agent 3% 15 15 18 49 Appraisal 3% 6 16 21 55

Exhibit 3-7 TIME SPENT ON COMMERCIAL REAL ESTATE ACTIVITY, BY GENDER AND EXPERIENCE (Percentage Distribution) Experience as a Commercial Real Estate Agent or Broker 2 years or less 15% 23 20 15 27 3 to 5 years 4% 20 14 22 41 6 to 15 years 1% 14 14 22 50 16 to 25 years 1% 12 12 15 60 26 years or more 1% 11 10 17 61
None 1 to 24% 25 to 49% 50 to 74% 75 to 100%
GENDER Male 2% 12 12 19 55 Female 5% 20 15 17 43

Exhibit 3-8 COMPENSATION STRUCTURES FOR NAR'S COMMERCIAL MEMBERS, 2012, BY LICENSE TYPE (Percentage Distribution)
Percentage commission split 100% commission Fee for service Commission plus a share of profits Commission plus salary Salary plus a share of profits Straight salary Share of profits only
All Commercial Members 45% 34 6 5 4 4 2 2
LICENSED AS Broker 35% 41 5 6 5 4 2 2 Broker Associate 58% 30 1 4 1 4 1 1 Sales Agent 61% 27 2 2 1 4 1 2 Appraisal 24% 17 8 1 39 5 1 4

Exhibit 3-9 COMPENSATION STRUCTURES FOR NAR'S COMMERCIAL MEMBERS, 2012, BY GENDER AND EXPERIENCE (Percentage Distribution) Experience as a Commercial Real Estate Agent or Broker 2 years or less 51% 26 2 4 13 2 * 2 3 to 5 years 48% 34 1 4 2 7 2 3 6 to 15 16 to 25 26 years years years or more 52% 33 3 3 3 3 1 2 41% 36 4 4 6 5 2 3 35% 35 6 7 8 4 3 2
Percentage commission split 100% commission Fee for service Commission plus a share of profits Commission plus salary Salary plus a share of profits Straight salary Share of profits only *Less than one percent
GENDER Male Female 41% 36 4 5 6 4 2 2 52% 30 3 2 3 5 1 4

Exhibit 3-10 COMPENSATION STRUCTURES FOR NAR'S COMMERCIAL MEMBERS, 2012, NAR MEMBER AFFILIATES (Percentage Distribution)
Membership in NAR Affiliates (Designee or Candidate) Certified International Property Specialists (CIPS) 48% 40 1 5 6 * * * Society of Industrial and Office REALTORS (SIOR) 33% 41 2 15 * 7 3 * Certified Commercial Institute of Investment Not a Real Estate Member member Management (CCIM of any (IREM) Institute) affiliate 33% 24 17 6 8 5 2 6 40% 39 5 6 3 4 2 1 47% 33 2 4 6 5 1 2
Percentage commission split 100% commission Fee for service Commission plus a share of profits Commission plus salary Salary plus a share of profits Straight salary Share of profits only
Counselors Accredited of Real Land Estate Consultant (CRE) (RLI) 40% 28 8 4 16 * 4 * 38% 32 4 7 13 2 2 4
*Less than one percent

Exhibit 3-11 SHARE OF ANNUAL INCOME FROM ALL TYPES OF COMMERCIAL ACTIVITIES, 2012, BY LICENSE TYPE (Percentage Distribution)
LICENSED AS All Commercial Members 7% 18 12 17 47 70% Broker 7% 17 10 17 49 74% Broker Associate 6% 19 13 17 45 68% Sales Agent 10% 21 15 15 40 59% Appraisal 4% 12 13 21 50 75%
None 1 to 24% 25 to 49% 50 to 74% 75 to 100% Median

Exhibit 3-12 SHARE OF ANNUAL INCOME FROM ALL TYPES OF COMMERCIAL ACTIVITIES, 2012, BY GENDER AND EXPERIENCE (Percentage Distribution) Experience as a Commercial Real Estate Agent or Broker 2 years or less 35% 25 9 11 20 14% 3 to 5 years 9% 27 13 17 34 51% 6 to 15 years 7% 19 12 17 46 70% 16 to 25 years 4% 14 13 17 53 76% 26 years or more 3% 14 12 18 54 77%
All Commercial Members 7% 18 12 17 47 70%
GENDER Male 5% 16 13 18 48 72% Female 14% 24 9 11 41 56%

Exhibit 3-13 SHARE OF ANNUAL INCOME FROM COMMERCIAL SALES ACTIVITY, 2012, BY LICENSE TYPE (Percentage Distribution)
LICENSED AS All Commercial Members 20% 18 17 23 23 43% Broker 20% 17 18 22 23 43% Broker Associate 14% 18 15 27 26 53% Sales Agent 19% 18 14 23 26 49% Appraisal 42% 18 24 11 5 11%

Exhibit 3-14 SHARE OF ANNUAL INCOME FROM COMMERCIAL SALES ACTIVITY, 2012, BY GENDER AND EXPERIENCE (Percentage Distribution) Experience as a Commercial Real Estate Agent or Broker 2 years or 3 to 5 6 to 15 16 to 25 26 years less years years years or more 61% 21% 16% 16% 18% 11 18 19 19 16 6 13 18 20 18 10 22 25 24 21 13 26 23 21 27 0% 46% 47% 44% 48%

Exhibit 3-15 SHARE OF ANNUAL INCOME FROM COMMERCIAL LEASING ACTIVITY, 2012, BY LICENSE TYPE (Percentage Distribution)
LICENSED AS Broker 27% 29 20 13 11 19% Broker Associate 27% 31 22 11 9 18% Sales Agent 30% 27 18 17 9 18% Appraisal 53% 33 7 5 2 0%

Exhibit 3-16 SHARE OF ANNUAL INCOME FROM COMMERCIAL LEASING ACTIVITY, 2012, BY GENDER AND EXPERIENCE (Percentage Distribution) Experience as a Commercial Real Estate Agent or Broker 2 years or less 72% 11 7 4 6 0% 3 to 5 years 32% 37 15 8 8 12% 6 to 15 years 26% 30 20 17 9 20% 16 to 25 years 23% 30 20 16 12 22% 26 years or more 28% 28 23 12 10 19%

Exhibit 3-17 SHARE OF ANNUAL INCOME FROM COMMERCIAL PROPERTY MANAGEMENT ACTIVITY, 2012, BY LICENSE TYPE (Percentage Distribution)
LICENSED AS Broker 58% 24 9 6 4 0% Broker Associate 76% 16 3 1 3 0% Sales Agent 75% 16 3 3 3 0% Appraisal 66% 26 6 * 1 0%

Exhibit 3-18 SHARE OF ANNUAL INCOME FROM COMMERCIAL PROPERTY MANAGEMENT, 2012, BY GENDER AND EXPERIENCE (Percentage Distribution) Experience as a Commercial Real Estate Agent or Broker 2 years or less 85% 9 3 1 3 0% 3 to 5 years 69% 18 2 4 7 0% 6 to 15 years 70% 18 5 4 3 0% 16 to 25 years 64% 21 9 4 2 0% 26 years or more 55% 27 9 4 5 0%

Exhibit 3-19 COMMERCIAL FIRM AFFILIATION (Percent of Respondents) All Commercial Members 31% 6 5 5 3 2 2 1 1 1 1 1 * * * * * * * * * * * * 46
Independent-not affiliated with a firm Re/Max Commercial KW Commercial Coldwell Banker Commercial Century 21 Commercial NAI Global CB Richard Ellis Cushman & Wakefield Colliers International ERA Commercial Investment Network Grubb & Ellis Sperry Van Ness Marcus & Millichap Transwestern Commercial Services TCN Worldwide Cassidy Turley Duke Realty Corporation Jones Lang LaSalle Lee and Associates Lend Lease ONCOR International Studley Trammell Crow Tishman Speyer Other *Less than one percent

Exhibit 3-20 FIRM CHARACTERISTICS, BY LICENSE TYPE (Percentage Distribution)
LICENSED AS All Commercial Members 56% 13 12 12 6 Broker 64% 11 14 7 4 Broker Associate 46% 15 11 19 9 Sales Agent 46% 15 10 18 10 Appraisal 60% 15 18 5 2
Local Regional (2 or more States) Statewide International National

Exhibit 3-21 FIRM COMPOSITION, BY LICENSE TYPE (Percentage Distribution)
More residential than commercial brokers/agents Commercial brokers/agents only More commercial than residential brokers/agents Not a brokerage firm Residential brokers/agents only *Less than one percent
LICENSED AS Broker 37% 40 14 5 3 Broker Associate 61% 29 7 * 3 Sales Agent 58% 28 9 1 5 Appraisal 23% 22 13 38 4

Exhibit 3-22 NUMBER OF ACTIVE COMMERCIAL SALES/LEASING AGENTS OR BROKERS, OR PROPERTY MANAGEMENT PROFESSIONALS IN THE FIRM, BY LICENSE TYPE (Percentage Distribution)
LICENSED AS All Commercial Members 3% 20 42 21 4 2 1 1 1 2 3 1 Broker 2% 31 43 16 3 1 1 * 1 1 1 * Broker Associate 2% 7 44 26 7 4 1 1 1 3 4 * Sales Agent 1% 5 40 32 5 2 3 1 2 3 6 1 Appraisal 17% 25 33 13 * 1 * * * 1 1 9
None One 2 to 5 6 to 25 26 to 50 51 to 100 101 to 250 251 to 500 501 to 999 1,000 or more Don't know Not applicable *Less than one percent

Exhibit 3-23 POPULATION BASE FOR THE MARKET OFFICE PRACTICED, BY LICENSE TYPE (Percentage Distribution)
LICENSED AS All Commercial Members 8% 8 16 15 14 16 11 13 Broker 9% 6 15 14 16 19 9 13 Broker Associate 8% 10 16 15 12 13 13 13 Sales Agent 6% 8 17 17 12 14 14 11 Appraisal 3% 7 15 21 12 15 13 15
Less than 49,999 50,000 to 99,999 100,000 to 249,999 250,000 to 499,999 500,000 to 999,999 1,000,000 to 1,999,999 2,000,000 to 3,999,999 4,000,000 or more

Exhibit 3-24 PERSONAL INVESTMENT IN COMMERCIAL REAL ESTATE AS A PERCENTAGE OF PERSONAL INCOME IN 2012, BY LICENSE TYPE (Percentage Distribution)
LICENSED AS All Commercial Members 15% 50 15 12 8 Broker 13% 52 15 12 8 Broker Associate 17% 51 14 7 12 Sales Agent 23% 39 18 13 8 Appraisal 4% 57 17 15 7
None 1 to 24% 25 to 49% 50 to 74% 75 to 100%
Chapter 4
The typical commercial REALTOR is 59 years old. Brokers, broker associates, and appraisers are the most seasoned among commercial members, while sales agents have the largest representation of younger commercial members. At 78 percent, the majority of commercial members are male. Thirty-three percent of those with two years or less experience are women compared with 18 percent of those with 26 years or more experience. Sales agents have the largest representation of female practitioners at 29 percent. Racial and ethnic minorities comprise a small but significant portion of NAR commercial members. Ninety-one percent of members identify themselves as White/Caucasian. Asian/Pacific Islanders and Latino/Hispanics each account for three percent of commercial members. Black/African Americans account for two percent of commercial members. Thirty-five percent of commercial members have a bachelors degree, while another 10 percent have completed some graduate school. Twenty percent have earned a graduate degree. Seventy-seven percent of commercial REALTORS are married, with 14 percent being divorced, and six percent being single and never married.
DEMOGRAPHIC CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

Exhibit 4-1 Exhibit 4-2 Exhibit 4-3 Exhibit 4-4 Exhibit 4-5 Exhibit 4-6 Exhibit 4-7 Exhibit 4-8 Exhibit 4-9 Exhibit 4-10 AGE DISTRIBUTION OF NAR'S COMMERCIAL MEMBERS, BY LICENSE TYPE AND GENDER GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS, BY LICENSE TYPE GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS, BY COMMERCIAL REAL ESTATE GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS, BY NAR AFFILIATES RACIAL AND ETHNIC DISTRIBUTION OF NAR'S COMMERCIAL MEMBERS, BY AGE AND GENDER HIGHEST EDUCATION LEVEL OF NAR'S COMMERCIAL MEMBERS HIGHEST EDUCATION LEVEL OF NAR'S COMMERCIAL MEMBERS BY LICENSE TYPE HIGHEST EDUCATION LEVEL OF NAR'S COMMERCIAL MEMBERS MARITAL STATUS OF NAR'S COMMERCIAL MEMBERS

Exhibit 4-1 AGE DISTRIBUTION OF NAR'S COMMERCIAL MEMBERS, BY LICENSE TYPE AND GENDER (Percentage Distribution)
All Commercial Members Under 30 years 31 to 35 years 36 to 40 years 41 to 45 years 46 to 50 years 51 to 55 years 56 to 60 years 61 to 65 years 66 years and over Median age * Less than one percent 2% 3 4 5 10 14 21 18 23 59
Licensed As Broker 1% 2 4 5 9 14 20 20 26 60 Broker Associate 3% 2 3 4 10 11 24 18 25 60 Sales Agent 2% 6 4 6 11 16 20 15 20 57 Appraiser 1% 3 5 3 7 22 27 20 12 58
Gender Male * 1 3 3 5 9 13 21 19 59 Female * 2 3 4 4 12 18 25 14 58

Exhibit 4-2 GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS (Percentage Distribution)
All Commercial Members Male Female 78% 22%
GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS

(Percentage Distribution)
Female, 22%
Male, 78%

Exhibit 4-3 GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS, BY LICENSE TYPE (Percentage Distribution)
All Commercial Members Male Female 78% 22
Licensed As Broker 80% 20 Broker Associate 76% 24 Sales Agent 71% 29 Appraiser 89% 11

Exhibit 4-4 GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS, BY COMMERCIAL REAL ESTATE EXPERIENCE (Percentage Distribution) Experience as a Commercial Real Estate Agent or Broker 2 years or 3 to 5 6 to 15 16 to 25 26 years or less years years years more 67% 73% 73% 77% 82% 33 27 27 23 18
All Commercial Members Male Female 78% 22

Exhibit 4-5 GENDER BREAKDOWN OF NAR'S COMMERCIAL MEMBERS, BY NAR AFFILIATES (Percentage Distribution)
Membership in NAR Affiliates (Designee or Candidate) Certified Certified Society of Commercial Investment Counselors Accredited International Industrial Institute of Property and Office Member All of Real Land Real Estate (CCIM Commercial Estate Consultant Specialists REALTORS Management (CIPS) (SIOR) Institute) Members (CRE) (RLI) (IREM) Male Female 78% 22 78% 22 77% 24 67% 33 93% 8 72% 28 83% 17
Not a member of any affiliate 77% 24

Exhibit 4-6 RACIAL AND ETHNIC DISTRIBUTION OF NAR'S COMMERCIAL MEMBERS, BY AGE AND GENDER (Percentage Distribution)
All Commercial Members White/Caucasian Asian/Pacific Islander Latino/Hispanic Black/African American American Indian/Eskimo/Ale ut Other * Less than one percent 91% 3 3 2 1
Age 39 or younger 89% 3 7 1 * 40 to 49 92% 5 4 * 1 50 to 59 88% 3 4 2 * 60 or older 93% 2 2 2 1
Gender Male 92% 2 2 3 1 Female 89% 4 2 4 *

Exhibit 4-7 HIGHEST EDUCATION LEVEL OF NAR'S COMMERCIAL MEMBERS (Percentage Distribution)
All Commercial Members High School Some College/ Associates Degree Bachelor's Degree Graduate Study Graduate Degree 5% 31%
HIGHEST EDUCATION LEVEL OF NAR'S COMMERCIAL MEMBERS (Percentage Distribution)
High School, 5% 35% 10% 20% Graduate Study, 10% Graduate Degree, 20%
Some College/ Associates Degree, 31%
Bachelor's Degree, 35%

Exhibit 4-8 HIGHEST EDUCATION LEVEL OF NAR'S COMMERCIAL MEMBERS BY LICENSE TYPE (Percentage Distribution)
High School Some College/ Associates Degree Bachelor's Degree Graduate Study Graduate Degree
Broker 5% 30 32 10 23
Licensed As Broker Sales Associate Agent 5% 30 37 11 17 5% 36 36 8 16
Appraiser 4% 21 49 14 13

Exhibit 4-9 HIGHEST EDUCATION LEVEL OF NAR'S COMMERCIAL MEMBERS (Percentage Distribution)
Membership in NAR Affiliates (Designee or Candidate) Accredited Land Consultant (RLI) 6% 24 Certified Society of International Industrial and Institute of Real Estate Property Office Specialists REALTORS Management (IREM) (CIPS) (SIOR) 7% 28 6% 13 4% 23 Certified Commercial Investment Member (CCIM Institute) 4% 25 Not a member of any affiliate 5% 34
All Counselors Commercial of Real Members Estate (CRE) High School Some College/ Associates Degree Bachelor's Degree Graduate Study Graduate Degree * Less than one percent 5% 31 * 35
35 10 20
30 13 22
40 8 22
25 6 34
39 15 28
33 9 32
36 13 22
35 9 18

Exhibit 4-10 MARITAL STATUS OF NAR'S COMMERCIAL MEMBERS (Percentage Distribution) All Commercial Members 77% 6% 14% 2% 1%
MARITAL STATUS OF NAR'S COMMERCIAL MEMBERS (Percentage Distribution) Widowed, 2% Other, 1%
Married Single (never married) Divorced Widowed Other
U.
Divorced, 14%
Single (never married), 6%
Married, 77%
Methodology
In February 2013, NAR invited a random sample of 42,169 REALTORS with an interest in commercial real estate to fill out an online survey. A total of 1,796 responses were received for an overall response rate of 4.3 percent. All information in this report is representative of member characteristics in 2013 while sales and lease transaction values and income are characteristic of calendar year 2012. The NATIONAL ASSOCIATION OF REALTORS is committed to equal opportunity in the real estate industry. In accordance with this commitment, racial and ethnic information was collected and included in this report. The primary measure of central tendency used throughout this report is the median the middle point in the distribution of responses to a particular question or, equivalently, the point at which half of the responses are above and below a particular value.
The NATIONAL ASSOCIATION OF REALTORS, The Voice for Real Estate, is Americas largest trade association, representing 1 million members, including NARs institutes, societies and councils, involved in all aspects of the real estate industry. NAR membership includes brokers, sales people, property managers, appraisers, counselors and others engaged in both residential and commercial real estate. The term REALTOR is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS and subscribes to its strict Code of Ethics. Working for America's property owners, the National Association provides a facility for professional development, research and exchange of information among its members and to the public and government for the purpose of preserving the free enterprise system and the right to own real property.
NATIONAL ASSOCIATION OF REALTORS COMMERCIAL REAL ESTATE DIVISION

NAR Commercial represents the collective commercial real estate constituencies of NAR, including the affiliated commercial members the CCIM Institute, the Counselors of Real Estate (CRE), the Institute of Real Estate Management (IREM), the REALTORS Land Institute (RLI), and the Society of Industrial and Office REALTORS (SIOR). NAR Commercial works to serve the needs of our commercial practitioner members and the commercial real estate industry through the development of valuable products and services, technology initiatives, public policy advocacy, education, research and legal analysis. www.REALTOR.org/Commercial www.CommercialSearch.com NATIONAL ASSOCIATION OF REALTORS 430 North Michigan Avenue Chicago, IL 60611- 4087 1-800-874-6500 Web site: www.REALTOR.org
Affiliated Commercial Members

CCIM Institute (CCIM) The CCIM Institute has conferred the Certified Commercial Investment Member (CCIM) designation since 1969. Professional experience requirements ensure that a CCIM is skilled in both theory and practice. The Institute stresses education, networking and ethical practice. Contact CCIM at 312-321-4460 or at www.ccim.com Counselors of Real Estate (CRE) The Counselors of Real Estate is an international network of commercial practitioners who provide advice to clients on complex real property situations and land-related issues. CRE designated members hold prominent positions in real estate, financial, legal and accounting firms, as well as in government and academia. Membership is extended by invitation only on either a sponsored or self-initiated basis. Contact CRE at 312-329-8427 or at www.cre.org Institute of Real Estate Management (IREM) The Institute of Real Estate Management provides training, information, research, analysis and practical advice for those who manage income-producing real estate of all types at all career levels. The Institute awards designations of Certified Property Manager (CPM), the Accredited Residential Manager and the Accredited Management Organization (ARO). Contact IREM at 312-329-6000 or at www.irem.org.
Affiliated Commercial Members

REALTORS Land Institute (RLI) As recognized experts in land, RLI members specialize in farms and ranches; undeveloped tracts of land; transitional and development land; subdivision and wholesaling of lots; and site selection and assemblage. RLI has awarded the Accredited Land Consultation (ALC) designation to a select group of over 1,000 land specialists since 1944. Contact RLI at 312-329-8446 or at www.rliland.com Society of Industrial and Office REALTORS (SIOR) The Society awards the SIOR (Specialist, Industrial & Office Real Estate) designation to brokerage specialists who meet its strict experience, transaction, education and ethical standards. Recipients of this designation are recognized within the commercial brokerage industry as the most experienced and capable practitioners. One of the leading commercial and industrial real estate associations, the Society has 2,300 members in 450 cities in 20 countries. Contact SIOR at 202-449-8200 or at www.sior.com

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National Association of REALTORS

Commercial Member Profile 2013

First Vice President Chris Polychron, CRS, GRI

NAR Commercial Leadership

2013 NAR Commercial Member Profile

NAR RESEARCH STAFF

Ken Fears Manager, Regional Economics and Housing Finance

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

Broker Broker Associate Sales Agent Appraisal

60% 19% 25% 6%

NAR'S COMMERCIAL MEMBERS BY TYPE OF LICENSE

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

Broker Broker Associate Sales Agent Appraisal

All Commercial Members 60% 19 25 6

26 years or more 70% 21 12 11

* Less than one percent

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

Broker Broker Associate Sales Agent Appraisal

All Commercial Members 60% 19 25 6

Gender Female 53% 20 31 3

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

Gender Male Female 27% 25 24 21 21 20 17 18 16 10 11 8 6 6 4 1 11 24% 27 25 17 20 17 18 12 11 13 5 6 7 3 5 * 13

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

14% 14% 14% 13% 12% 11% 11% 10% 10% 8% 8% 8%

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

* Less than one percent

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

* Less than one percent

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

* Less than one percent

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

All Commercial Members 1% 2 2 3 4 22 16 23 24 6 17

* Less than one percent

2013 NAR Commercial Member Profile

BUSINESS CHARACTERISTICS OF NAR'S COMMERCIAL MEMBERS

2013 NAR Commercial Member Profile

BUSINESS ACTIVITY OF NAR'S COMMERCIAL MEMBERS

2013 NAR Commercial Member Profile

2013 NAR Commercial Member Profile