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
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. Therefore, access to capital markets is essential to success in this industry... read more