Companies in this industry act as agents in the buying, leasing and selling of commercial real estate, in addition to managing nonresidential properties for owners. Major companies include CBRE Group, Cushman & Wakefield, Jones Lang LaSalle (JLL), and Newmark Grubb Knight Frank (all US-based), as well as Countrywide and Savills (both in the UK) and Mitsui Fudosan (Japan).
Global commercial property sales, which drive demand for this industry, have been rising steadily. Direct commercial real estate investment topped $700 billion in 2014, according to Jones Lang LaSalle. The improving global outlook is leading real estate investors to look outside their home markets for opportunities across the spectrum of locations and sectors.
The US commercial real estate brokerage and management industry includes about 35,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $35 billion.
The industry includes sales and leasing brokers and agents for nonresidential property, as well as property managers. Many companies combine these functions. Brokers and property managers also are covered individually in separate profiles. Owners of commercial property who perform their own leasing and property management aren't included in this industry. Commercial real estate financing is not included in this industry.
Demand, which is driven by the volume of commercial real estate transactions, is heavily influenced by real estate vacancy rates. The profitability of individual companies depends on efficient operations. Large companies have advantages in performing a full range of...