Industry Analysis & Industry Trends
The Global Commercial Real Estate industry recovered from the difficult recessionary environment, fueled by a global credit crunch and a notable contraction in lending, real estate transactions, construction activity and property values. Booming commercial real estate activity in Asia offset declines in other regions, and lower unemployment and higher disposable incomes in mature economies helped revive commercial construction and real estate prices. In the next five years, industry revenue is forecast to increase as expanding business and retail operations drives revenue growth. Additionally, the global RE market will increasignly shift toward burgeoning countries where consistent growth will be apparent... read more
The Global Commercial Real Estate industry is highly capital intensive. IBISWorld estimates that on average, industry players spend $0.53 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