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, while lower unemployment and higher disposable incomes in mature economies helped revive commercial construction and real estate prices. Over the next five years, industry revenue is forecast to increase as expanding business and retail operations drives revenue growth. Additionally, the global real estate market will increasignly shift toward burgeoning countries where consistent growth will be apparent...purchase to read more.

Industry Statistics & Market Size
Revenue
$4tr
Annual Growth 13-18
2.9%
Forecast Growth 18-23
Profit
Employment
16.2m
Businesses
3.7m
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Report - Industry Investment Chapter

The Global Commercial Real Estate industry is highly capital intensive. IBISWorld estimates that industry players spend $0.60 cents on capital for every dollar spent on labour. However, the capital intensity of an industry operator varies greatly depending on whether the company owns the commercial space it leases.Industry participants that directly own and operate various real estate assets need to invest more in capital to develop land and refurbish buildings. Commercial property is also expensive, particularly large buildings or property that is near major metropolitan areas. For this reason, the residential and commercial leasing segments of the industry are the most capital intensive...purchase to read more.

Additional Insights for the Global Commercial Real Estate Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Global Commercial Real Estate Industry are

  • Understanding government policies and their implications
  • Ability to effectively communicate and negotiate
  • Good project management skills
  • IBISWorld analysts also discuss how external factors such as Global aggregate private investment and Global investor confidence in the Global Commercial Real Estate industry impact industry performance..

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    What's in this report

    What is the Global Commercial Real Estate Industry?

    Operators in this industry buy, sell, rent and operate owned or leased real estate, including income-generating residential properties (e.g. apartment buildings) and commercial properties (e.g. retail malls, hotels, restaurants and casinos). The industry also includes real estate services, such as brokerage, property management, valuation and other consulting services.

    Industry Products
  • Other leasing
  • Commercial leasing
  • Residential leasing
  • Capital Markets
  • Management, advisory and related services
  • Industry Activities
  • Leasing nonresidential buildings, structures and land
  • Leasing mini warehouses and self-storage units
  • Renting nonresidential real estate for others (e.g. agents and brokers)
  • Selling real estate for others (e.g. agents and brokers)
  • Providing property management services
  • Providing real estate appraisal and valuation services
  • Providing real estate asset management services
  • Providing real estate listing services
  • Providing real estate consulting services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Global aggregate private investment
  • Global investor confidence
  • Global consumer sentiment index
  • Global unemployment rate

  • Current Performance
    Rebounding US marketAsia's strengthSlow growth from the Eurozone
  • Chart: Revenue Growth

  • Industry Outlook
    Mature marketsAsia-Pacific marketsDownside risks remain
  • Table: Global Commercial Real Estate Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Global Commercial Real Estate Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Global Manufacturing
  • Global Wholesale and Retail Trade
  • Global Hotels and Restaurants
  • Global Casinos & Online Gambling
  • Global Consumers

  • Key Selling Industries
  • Global Commercial Banks
  • Global Computer Hardware Manufacturing
  • Global Electricity, Gas and Water Supply
  • Global Magazine Publishing

  • Products & Services
  • Commercial leasing
  • Residential leasing
  • Management, advisory and related services
  • Capital Markets
  • Other leasing
  • Chart: Global Commercial Real Estate Industry Products and Services Segmentation

  • Demand Determinants
  • Interest rates and liquidity
  • Overall economic trends

  • Major Markets
  • Office buildings
  • Multifamily residential buildings
  • Industrial buildings
  • Retail buildings
  • Hospitality buildings
  • Chart: Major Market Segmentation for the Global Commercial Real Estate Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Depreciation
  • Purchases, rent and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Global Commercial Real Estate

  • Basis of Competition
  • Commercial real estate services
  • Commercial and residential leasing
  • Real estate development and property subdivision
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Global Commercial Real Estate Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Global Commercial Real Estate Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Global Commercial Real Estate Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Global aggregate private investment (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Class A
  • A category of commercial office building that commands the highest rent due to the attractiveness and prestige associated with its location, tenancy, amenities and overall desirability.
  • Leadership In Energy And Environment Design (Leed)
  • An environmental building certificate program established under the US Green Building Council that certifies buildings meet energy-efficiency and green requirements.
  • Loan-To-Value Ratios
  • A ratio used to determine how much of a property is being financed or leveraged. For example, a $100,000 house with a mortgage of $80,000 has an LTV ratio of 80.0%.
  • Occupancy Rate
  • The rate of available spots at a center or a building that are filed; A rate of at least 70.0% is necessary for a center to be profitable.
  • Real Estate Investment Trust (Reit)
  • A legal entity that uses pooled investor capital to purchase and manage income property or mortgage loans. To qualify as a REIT, the entity must distribute at least 90.0% of taxable income.
  • Rental Agreement
  • An agreement that is similar to a lease but does not have a set period of occupancy. Landlords and tenants are free to make changes to the contract at the end of each 30-day period.
  • Vacancy Rate
  • The amount of real estate space unoccupied as a percentage of total available space.
  • What Our Customers Say

    Why buy this report?

    The global economy presents its own set of opportunities and threats for businesses in a range of industries. IBISWorld’s Global Commercial Real Estate global market research report offers insightful industry analysis and research into the market at an international level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Global Commercial Real Estate:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Global Commercial Real Estate market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Global Commercial Real Estate, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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