 |
| A Microeconomic Study of Commercial Real
Estate Brokerage Firms Author: T.L. Tyler Yang, Joseph W. Trefzger, and Lawrence F. Sherman Start Page: 177 Abstract: While residential
brokerage has been widely studied, the operating characteristics on income property
brokerage firms have received little attention in the literature. In this paper, we
analyze results from a survey of income property brokers to measure profitability scale
effects, and expenditures at the firm level. We find that while scale economies exist for
expenses, net income per producer falls as firms grow; the optimally sized firm is
comparatively small. Although inconsistencies with results from recent residential
brokerage studies may relate to the survey period, they may also support a view that
residential and income brokerage firms are structurally different. |
