New lease: Increased consumer spending and business confidence will support industry growth

Over the past five years, increased consumer confidence and household disposable income have encouraged greater consumer spending. This preceded businesses increasing their production and inventory, which required space. As the overall economic recovery has unfolded, increased demand for industry services is expected to bolster revenue over the five-year period. A strong rebound in the corporate sector is driving a turnaround in the commercial leasing market. As much of the recovery occurred over the past five years, growth will slow over the next five; this is expected as pent-up demand continues to be satisfied. What growth occurs is expected to result from increased corporate profit over the next five years. Over this period, industry revenue is forecast to increase...read more.

Industry Statistics & Market Size
Revenue
$210bn
Annual Growth 12-17
3.0%
Forecast Growth 17-22
Profit
Employment
456,779
Businesses
314,142
Market Share of Companies
There are no companies with a dominant market share in this industry
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Industry Threats & Opportunities

  • Economic recovery will lead to an increase in the number of industry operators
  • Financing costs have increased because financial institutions have been reluctant to take risks
  • While the emphasis on decreased leveraging is expected to reduce risk, it will also lower returns
  • 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 Number of businesses and National unemployment rate in the Commercial Leasing industry impact industry performance..

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    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
  • Property 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
  • Number of businesses
  • National unemployment rate
  • Investor uncertainty
  • Prime rate
  • Corporate profit

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

  • Industry Outlook
  • Expansion
  • 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 sales
  • Property management
  • Chart: Commercial Leasing Industry Products and Services Segmentation

  • Demand Determinants
  • Office sector
  • Office sector
  • Retail sector
  • Industrial sector

  • Major Markets
  • Office and professional buildings
  • Shopping centers, retail shops and flea market spaces
  • Industrial buildings
  • Other non-residential properties
  • 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Corporate profit (2008-2022)

  • 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.
  • Why buy this report?

    IBISWorld’s industry research report on Commercial Leasing provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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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