Industry Analysis & Industry Trends
The Global Commercial Real Estate (CRE) industry includes real estate brokerage, valuation, sales, management, consulting and appraisal. Aggregated by geographic region, the industry is dominated by developed economies, primarily in the United States and Europe. However, emerging economies like China have experienced the strongest industry growth over the five years to 2014. While slower anticipated growth of Europe and Japan will limit more rapid increases in industry revenue, the global CRE market will shift more and more toward burgeoning countries like India, where consistent growth will be found during the coming years... read more
The Global Commercial Real Estate industry is highly capital intensive. IBISWorld estimates that on average, industry players spend $0.76 cents on capital for every dollar spent on labor. However, capital intensity of an industry operator varies greatly depending on whether the firm owns the commercial space it leases.
Industry participants who directly own and operate various real estate assets need a large level of capital to develop land and refurbish buildings. Commercial property is also very expensive, particularly with regards to large buildings or property that is near major metropolitan areas or in well developed countries. Investment requirements for establishments that do not own buildings, but sublease space, tend to be much lower... read more