New lease: Increased demand for industry services is expected to bolster revenue

Operators in the Commercial Leasing 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. Over the five years to 2018, increased consumer confidence and household disposable income have encouraged greater consumer spending. Strong improvements in the corporate sector are driving growth in the commercial leasing market. Growth will likely slow over the next five years as pent-up demand continues to be satisfied. This small growth is expected to result from increased corporate profit over the next five years...purchase to read more.

Industry Statistics & Market Size
Revenue
$238bn
Annual Growth 13-18
5.1%
Forecast Growth 18-23
Profit
Employment
584,598
Businesses
405,038
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Strong improvements in the corporate sector are driving industry growth
  • Financing and pricing remain the two largest challenges to the industry’s recovery
  • The value of private nonresidential construction is expected to strengthen
  • Industry Report - Industry Analysis Chapter

    Operators in the Commercial Leasing 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. For industry operators, a large majority of industry revenue comes from rental income, while property sales account for a small margin. As a result, revenue fluctuates in line with rental rates and occupancy levels. Rental rates are traditionally based on the value of the underlying property, which is often affected by economic cycles and interest rate fluctuations. Add...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
  • 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 management and sales
  • Chart: Commercial Leasing Industry Products and Services Segmentation

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

  • 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?

    The Commercial Leasing industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-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 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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