Overview

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

IBISWorld’s Commercial Leasing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$196bn
Annual Growth
11-16
3.2%
Annual Growth
16-21
Profit
Employment
475,020
Business
334,262

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

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    Industry Analysis & Industry Trends

    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...

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    Industry Report - Industry SWOT Analysis Chapter

    The Commercial Leasing industry's value added, which measures the industry's contribution to the economy, is expected to increase at an annualized rate of 2.6% over the 10 years to 2021. In comparison, US GDP is forecast to rise at an annualized rate of 2.1% over this same period, according to IBISWorld estimates and the Bureau of Economic Analysis data. Typically, when an industry is growing at a faster pace than the economy, it is said to be in its growth phase. However, this discrepancy in growth is more of the result the slow recovery of the US economy. Consequently, despite the relatively high levels of growth recorded in the 10 years to 2021, the industry is still considered to be in the mature phase of its life cycle.

    ..

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    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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    Look under the hood?

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    Industry Products

    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

    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
  • National unemployment rate
  • Investor uncertainty
  • Prime rate
  • Corporate profit

  • Current Performance
  • Uneven recovery
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Increasing 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

  • 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 properties
  • Other
  • Property sales
  • Property management
  • 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 non-residential properties
  • Chart: Major Market Segmentation for the Commercial Leasing Industry

  • International Trade
    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

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

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Commercial Leasing Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Number of businesses (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    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:
    • 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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