Abstract
While residential brokerage has been widely studied, the operating characteristics of 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.
Published Version
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