Commercial Leasing in California

Overview

New lease: Industry operators will expand as unemployment falls and corporate profit rises

IBISWorld’s industry research report on Commercial Leasing in California contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Industry demand will soften due to saturation in the office market and lessened need for retail space, causing rental rates to fall
  • The majority of office rental revenue growth has been concentrated within coastal cities
  • As commercial lessors continue to hire more labor, total wages costs are projected to grow

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    Industry Analysis & Industry Trends

    The Commercial Leasing industry in California has exhibited healthy growth over the five years to 2017. As unemployment in the state has fallen and corporate profit has expanded, businesses have increasingly expanded their operations. As a result, businesses have required commercial spaces to facilitate their operations, fueling demand for commercial leasing. Office and industrial facilities, in particular, have performed strongly during this period. On average, vacancy rates for commercial buildings have decreased across the state, especially in growing economic areas. For example, San Francisco, which is home to the rapidly expanding technology sector, has the lowest vacancy rates for commercial, industrial and retail spaces relative to other regions within the state...

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    Industry Report - Industry Locations Chapter

    Commercial lessors are mostly concentrated in Los Angeles, Orange, San Diego, Santa Clara and San Francisco counties. These regions are large economic centers within the state, fostering strong demand for commercial leasing. As a result, about 64.0% of all establishments are located in these five counties.

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    Additional Insights for the Commercial Leasing in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Leasing in California Industry are

  • Financial structure of the company
  • Good project management skills
  • Management of a high quality assets portfolio

    • IBISWorld analysts also discuss how external factors such as Number of Businesses in California and Investor uncertainty in the Commercial Leasing in California industry impact industry performance..

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    Industry Products

    What is the Commercial Leasing in California Industry?

    Operators in this industry serve as lessors of buildings that are not used as residences or dwellings. Industry participants include owner-lessors of nonresidential buildings, establishments that rent real estate and then act as lessors in subleasing it to others, and establishments that provide full-service office space. This industry excludes general warehousing and storage companies, such as self-storage businesses.

    Industry Products
    Renting office buildings
    Renting retail buildings
    Renting industrial buildings
    Renting other nonresidential buildings
    Property sales
    Property management
    Industry Activities
    Renting or leasing office property
    Renting or leasing property
    Renting or leasing industrial property
    Renting or leasing arena, convention or stadium property

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Number of Businesses in California
  • Investor uncertainty
  • Corporate Profit in California
  • Unemployment Rate in California

    • Current Performance
  • Office space
  • Industrial boom
  • Chart: Revenue Growth

    • Industry Outlook
  • Office and retail woes
  • Industrial growth continues
  • Table: Commercial Leasing in California Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Leasing in California Industry Lifecycle vs The Economy

    • Products & Markets
    Supply Chains
    Key Buying Industries
  • Manufacturing
  • Wholesale Trade
  • Retail Trade
  • Finance and Insurance
  • Retirement & Pension Plans
  • Accommodation and Food Services
  • Public Administration

    • Key Selling Industries
  • Construction
  • Finance and Insurance
  • Property Management
  • Real Estate Sales & Brokerage
  • Utilities

    • Products & Services
  • Renting office buildings
  • Renting retail buildings
  • Renting industrial buildings
  • Renting other nonresidential buildings
  • Other
  • Property sales
  • Property management
  • Chart: Commercial Leasing in California Industry Products and Services Segmentation

    • Major Markets
  • Office and professional buildings
  • Retail buildings
  • Industrial buildings
  • Other nonresidential properties
  • Chart: Major Market Segmentation for the Commercial Leasing in California Industry

    • Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesDepreciationRentOther
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Leasing in California

    • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Leasing in California Industry

    • Major Companies
    Boston Properties Inc.Majestic Realty CompanyPrologis Inc.Simon Property Group Inc.
  • Table: Boston Properties Inc. - financial performance
  • Table: Majestic Realty Company - financial performance
  • Table: Prologis Inc. - financial performance
  • Table: Simon Property Group Inc. - financial performance

    • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Leasing in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

    • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Commercial Leasing in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of Businesses (2008-2022)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Class A Building
  • A commercial office building that commands the highest rent due to the attractiveness and prestige associated with its location, tenancy, amenities and overall desirability.
    • Funds From Operations (Ffo)
  • A measurement used to define cash flow from operations for REITs and calculated by adding depreciation and amortization expenses to earnings.
    • 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.
    • Leverage
  • The amount of debt used to finance a firm's assets. A firm that has a higher level of debt than equity is considered to be highly leveraged.
    • Loan-To-Value Ratio (Ltv)
  • 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 filled. 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.
    • Vacancy Rate
  • The amount of real estate space unoccupied as a percentage of total available space.

    • Why buy this report?

    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 Commercial Leasing in California:
    • 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 Commercial Leasing in California 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 Commercial Leasing in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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