Commercial Real Estate Management
Description
Companies in this industry manage commercial real estate. Major companies include CBRE, Cushman & Wakefield, and JLL (all based in the US), as well as Colliers (Canada), IWG (Switzerland), Lendlease (Australia), and Mitsubishi Estate (Japan).
The professionally managed global real estate investment market has reached $1.4 trillion in 2024 and is expected to reach $1.9 trillion by 2030. The APAC region is expected to contribute about 42% of their growth to the global commercial real estate market, according to Technavio.
The US commercial real estate management industry includes about 18,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $27 billion.
Commercial real estate brokers and sales agents are covered in a separate industry profile. Some companies offer both brokerage and management services.
COMPETITIVE LANDSCAPE
Demand is driven by commercial real estate occupancy levels. The profitability of individual companies depends on efficient operations and effective customer service. Large companies have advantages in performing a range of management services in multiple markets. Small companies can compete effectively by specializing in local markets. The industry is fragmented: the top 50 companies account for about 40% of revenue.
Companies that provide commercial property development, investment, construction, and brokerage services may also conduct management services and thus compete with companies in the commercial real estate management industry.
PRODUCTS, OPERATIONS & TECHNOLOGY
Commercial real estate managers oversee the operations of nonresidential property, such as office buildings and office parks, retail space and shopping centers, and warehouses and industrial buildings. Some commercial buildings also include apartments; buildings that mix apartments, offices, and retail space ("mixed-use") are typically more difficult to manage. Though some owners of commercial property perform their own property management, most contract out such services. "Property management" generally applies to services provided to non-occupying property investors, while "facility management" often refers to services provided to owner-occupiers. Major services include nonresidential building property management, which accounts for about 90%. Other services also include land property management and agent and brokerage services.
Property management companies typically provide services through an on-site general manager and staff that perform or oversee activities such as rent collection, maintenance and repair, security, cleaning, and trash disposal. They may also facilitate activities for tenants in common areas, and offer special amenities 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.
The professionally managed global real estate investment market has reached $1.4 trillion in 2024 and is expected to reach $1.9 trillion by 2030. The APAC region is expected to contribute about 42% of their growth to the global commercial real estate market, according to Technavio.
The US commercial real estate management industry includes about 18,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $27 billion.
Commercial real estate brokers and sales agents are covered in a separate industry profile. Some companies offer both brokerage and management services.
COMPETITIVE LANDSCAPE
Demand is driven by commercial real estate occupancy levels. The profitability of individual companies depends on efficient operations and effective customer service. Large companies have advantages in performing a range of management services in multiple markets. Small companies can compete effectively by specializing in local markets. The industry is fragmented: the top 50 companies account for about 40% of revenue.
Companies that provide commercial property development, investment, construction, and brokerage services may also conduct management services and thus compete with companies in the commercial real estate management industry.
PRODUCTS, OPERATIONS & TECHNOLOGY
Commercial real estate managers oversee the operations of nonresidential property, such as office buildings and office parks, retail space and shopping centers, and warehouses and industrial buildings. Some commercial buildings also include apartments; buildings that mix apartments, offices, and retail space ("mixed-use") are typically more difficult to manage. Though some owners of commercial property perform their own property management, most contract out such services. "Property management" generally applies to services provided to non-occupying property investors, while "facility management" often refers to services provided to owner-occupiers. Major services include nonresidential building property management, which accounts for about 90%. Other services also include land property management and agent and brokerage services.
Property management companies typically provide services through an on-site general manager and staff that perform or oversee activities such as rent collection, maintenance and repair, security, cleaning, and trash disposal. They may also facilitate activities for tenants in common areas, and offer special amenities 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.
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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