“Connect” me! Social networking in commercial real estate

Abstract

The use of social networking sites (SNS) within professional contexts is increasingly prevalent, yet studies examining their impact within the real estate sector remain limited. In this study, using LinkedIn followers as an indicator of professional networks, we investigate the effect of professional networking on performance within the commercial real estate market. By leveraging an agent's LinkedIn followers, we introduce a novel measure of professional network into the real estate literature. Findings suggest that listing agents with a larger number of SNS followers tend to engage in more property transactions, achieve higher sales prices, and experience shorter sale times than agents with fewer SNS connections. Similarly, agents considered “active” on the SNS also perform better than agents that have an account but are not “active.” These findings persist after accounting for various agent, property, and location characteristics, suggesting that SNS can be a helpful tool for real estate agents in utilizing and expanding their professional network.