Industry Analysis & Industry Trends
The global recession led to a notable contraction in the Global Commercial Real Estate industry during 2009 and the early half of 2010, as unemployment rose and property values fell in the United States, Europe and Japan. During the credit crunch, financing became constrained, real estate transactions dropped and new construction stalled. Fortunately, booming commercial real estate activity in Asia offset industry declines in other regions. In the coming years, expanding business and retail operations will drive industry growth, as unemployment declines in mature markets and consumer spending and corporate profit grow in developing economies... read more
Starting a New Business
Barriers to entry for new firms in this industry can vary significantly. For operators that specialize in commercial real estate services, such as brokerage and property management, most barriers are related to brand recognition and the ability to attract new clientele. These firms require less upfront capital, but it is often tough to acquire new clients due to the importance of having local contacts, strong referrals and a reputation for excellent performance.
Commercial real estate ownership, on the other hand, is capital intensive, as significant funds are needed to purchase property, develop land, and run operations. Access to capital markets, therefore, is essential to success in this industry... read more