Estate of mind: An increasing unemployment rate will further hinder revenue growth

Over the five years to 2018, increased consumer confidence and household disposable income have encouraged greater consumer spending. Businesses increased their production and inventory over the five years to 2018, which required space. Over the five years to 2018, industry operators benefited from expansion in nonresidential construction markets, in addition to increased commercial activity. As a result of increased demand for industry services, companies increased their labor forces to maintain their high standards of service. Growth will likely slow over the five years to 2023, as demand continues to be satisfied. Over the five years to 2023, industry revenue is forecast to decline...purchase to read more.

Industry Statistics & Market Size
Revenue
$221bn
Annual Growth 13-18
3.6%
Forecast Growth 18-23
Profit
Employment
505,005
Businesses
355,635
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Growth will likely slow over the five years to 2023, as demand continues to be satisfied
  • Vacancy rates in the office, industrial and retail markets, fell steadily
  • There are several factors that will have adverse effects on commercial leasing demand
  • Industry Report - Industry Locations Chapter

    The geographical distribution of the Commercial Leasing industry is largely reflected by the size and distribution of the US population, which is mainly driven by economic activity. Additionally, local regulations and tax laws also influence the distribution of establishments. As a result, the majority of industry participants are located in the Southeast, Mid-Atlantic and West regions. The largest states in terms of establishments and employment include California, New York, Florida and Texas.The Southeast accounts for 23.2% of industry operators. Florida, one of the largest states, accounts for 36.6% of these establishments in the Southeast. Many commercial lessors are located here since this region has the highest concentration of the US population. Mor...purchase to read more.

    Additional Insights for the Commercial Leasing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Leasing 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 National unemployment rate and Number of businesses in the Commercial Leasing industry impact industry performance..

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    What's in this report

    What is the Commercial Leasing 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 retail buildings
  • Renting office buildings
  • Renting industrial buildings
  • Renting other nonresidential properties
  • Property management and sales
  • 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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • National unemployment rate
  • Number of businesses
  • Investor uncertainty
  • Prime rate
  • Corporate profit
  • Office rental vacancy

  • Current Performance
  • Occupancy rates across major markets
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry trends
  • Future strategies
  • Table: Commercial Leasing Industry Revenue Outlook

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

  • 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 properties
  • Other
  • Property management and sales
  • Chart: Commercial Leasing Industry Products and Services Segmentation

  • Demand Determinants
  • Office segment
  • Retail segment
  • Industrial segment

  • Major Markets
  • Office and professional buildings
  • Shopping centers, retail shops and flea market spaces
  • Industrial buildings
  • Other nonresidential properties
  • Other
  • Chart: Major Market Segmentation for the Commercial Leasing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Depreciation
  • Rent
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Leasing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Leasing 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 Commercial Leasing 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 Commercial Leasing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Corporate profit (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Commercial Leasing is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

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

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