Commercial Real Estate Brokerage & Management
Description
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, Cushman & Wakefield, Jones Lang LaSalle, and Newmark (all US-based), as well as Colliers International (Canada), 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. The global commercial real estate brokerage and management market generated about $4.5 trillion in 2024, and is expected to reach nearly $9.5 trillion by 2034, according to Fact.MR. The increase is driven by the urban population, rise in commercial construction buildings, and surge in government initiatives for real estate investments.
The US commercial real estate brokerage and management industry includes about 140,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $140 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.
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 full range of services in multiple markets. Small companies can compete effectively by specializing in local markets. The US commercial property management segment is fragmented: the 50 largest companies account for about 40% of industry revenue. The commercial brokerage segment is fragmented: the 50 largest companies account for 30% of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Commercial real estate brokers and agents help clients buy and sell commercial real estate property and lease space within commercial buildings. They may also provide valuation and advisory services. 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.
Property managers are typically involved in the day-to-day operations of a commercial property, such as rent collection, maintenance and repair, security, cleaning, trash disposal, providing activities for tenants in common areas, and providing special items such as telecommunications, internet access, cable, office and food services, and landscaping. The services depend on the type of property being managed. While some services are performed by the property manager's employees, many are contracted out to specialists.
Brokerage, leasing, and property management 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; buildings that mix apartments, offices, and retail space are typically more difficult to manage.
Brokers and agents are typically paid a commission that's a percentage of the sales price of a property or of the leasing amount. Property managers are paid a fee that depends on the level of service they provide, but is also related to the amount of space they manage. A large company may have 50 million square feet under management. Global players, such as CBRE, may manage several billion square feet of commercial space.
Global commercial property sales, which drive demand for this industry, have been rising steadily. The global commercial real estate brokerage and management market generated about $4.5 trillion in 2024, and is expected to reach nearly $9.5 trillion by 2034, according to Fact.MR. The increase is driven by the urban population, rise in commercial construction buildings, and surge in government initiatives for real estate investments.
The US commercial real estate brokerage and management industry includes about 140,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $140 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.
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 full range of services in multiple markets. Small companies can compete effectively by specializing in local markets. The US commercial property management segment is fragmented: the 50 largest companies account for about 40% of industry revenue. The commercial brokerage segment is fragmented: the 50 largest companies account for 30% of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Commercial real estate brokers and agents help clients buy and sell commercial real estate property and lease space within commercial buildings. They may also provide valuation and advisory services. 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.
Property managers are typically involved in the day-to-day operations of a commercial property, such as rent collection, maintenance and repair, security, cleaning, trash disposal, providing activities for tenants in common areas, and providing special items such as telecommunications, internet access, cable, office and food services, and landscaping. The services depend on the type of property being managed. While some services are performed by the property manager's employees, many are contracted out to specialists.
Brokerage, leasing, and property management 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; buildings that mix apartments, offices, and retail space are typically more difficult to manage.
Brokers and agents are typically paid a commission that's a percentage of the sales price of a property or of the leasing amount. Property managers are paid a fee that depends on the level of service they provide, but is also related to the amount of space they manage. A large company may have 50 million square feet under management. Global players, such as CBRE, may manage several billion square feet of commercial space.
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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