Commercial Real Estate Brokerage
Description
Companies in this industry act as agents in the buying, leasing, and selling of commercial real estate. Major companies include CBRE, Cushman & Wakefield, JLL, and Newmark Knight Frank (all based in the US), as well as Colliers (Canada), Countrywide and Savills (both based in the UK), and E-House China Holdings.
Global commercial real estate market is expected to reach about $120 trillion in 2025 and about $125 trillion in 2029, with a compound annual growth rate (CAGR) of 1.35%, according to Statista. The near-term outlook is positive, 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 industry includes about 120,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $112 billion. The industry includes sales and leasing brokers and agents for nonresidential property.
Commercial real estate management is covered in a separate industry profile. Some companies offer both brokerage and management services.
COMPETITIVE LANDSCAPE
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 range of services in multiple markets. Small companies can compete effectively by specializing in local markets. The US industry is fragmented: the 50 largest firms account for about 30% of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include agent and brokerage services for the sale and rental of real estate. Services related sales and rentals of residential real estate account for about 75% of industry revenue, while sales and rentals of nonresidential real estate account for about 20%. Other services include property management services, sale and rental of land, and nonresidential building property management.
Most owners of commercial real estate property, including individuals, companies, and real estate investment trusts (REITS), don't occupy their property but instead lease space to others.
Brokerage and leasing operations vary according to the type of property. Major types of commercial property are office buildings, retail space and shopping centers, and warehouses and industrial buildings. Some commercial buildings also include apartments.
Brokers and agents are typically paid a commission that's a percentage of the sales price of a property or the leasing amount, typically about 5%.
Global commercial real estate market is expected to reach about $120 trillion in 2025 and about $125 trillion in 2029, with a compound annual growth rate (CAGR) of 1.35%, according to Statista. The near-term outlook is positive, 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 industry includes about 120,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $112 billion. The industry includes sales and leasing brokers and agents for nonresidential property.
Commercial real estate management is covered in a separate industry profile. Some companies offer both brokerage and management services.
COMPETITIVE LANDSCAPE
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 range of services in multiple markets. Small companies can compete effectively by specializing in local markets. The US industry is fragmented: the 50 largest firms account for about 30% of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include agent and brokerage services for the sale and rental of real estate. Services related sales and rentals of residential real estate account for about 75% of industry revenue, while sales and rentals of nonresidential real estate account for about 20%. Other services include property management services, sale and rental of land, and nonresidential building property management.
Most owners of commercial real estate property, including individuals, companies, and real estate investment trusts (REITS), don't occupy their property but instead lease space to others.
Brokerage and leasing operations vary according to the type of property. Major types of commercial property are office buildings, retail space and shopping centers, and warehouses and industrial buildings. Some commercial buildings also include apartments.
Brokers and agents are typically paid a commission that's a percentage of the sales price of a property or the leasing amount, typically about 5%.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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