Overview

Grand opening: Industry demand will continue to increase as construction markets stabilize

IBISWorld’s industry research report on Commercial Real Estate can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$1tr
Annual Growth
12-17
3.9%
Annual Growth
17-22
Profit
Employment
3,720,081
Business
2,331,047

Industry Threats & Opportunities

  • Despite volatile construction conditions, demand for industry services has grown robustly
  • Property appraisal databases and free listing websites have damaged real estate sales and brokerage
  • Improving credit conditions are forecast to spur investment in real estate

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    Industry Analysis & Industry Trends

    Over the five years to 2017, the Commercial Real Estate industry has emerged from the early recovery environment that was characterized by tightened lending conditions and stagnant real estate construction, and demand for industry services has since grown robustly, aided by the recovery of the overall economy. This recovery is forecast to continue over the five years to 2022 as industry real estate brokers and prospective buyers take advantage of historically low property values. The continued economic recovery will drive industry growth, and operators are expected to benefit from improvements in the lending conditions. Consumer spending will likely yield new demand for commercial and residential real estate growth...

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    Industry Report - Industry Products Chapter

    The Commercial Real Estate industry comprises a diverse set of operators that specialize in a variety of real estate activities, including brokerage, property and facilities leasing and management, research and analytics, consulting, valuation, appraisal, construction and asset management. These activities can be grouped into five major segments: construction, residential leasing, commercial leasing, property and asset management and sales and brokerage.

    Construction

    Construction activity accounts for an estimated 43.2% of industry revenue. Com..

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    Additional Insights for the Commercial Real Estate Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Real Estate Industry are

  • Good project management skills
  • Maintenance of excellent customer relations
  • Superior financial management
  • IBISWorld analysts also discuss how external factors such as Value of private nonresidential construction and Consumer spending in the Commercial Real Estate industry impact industry performance..

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    Look under the hood?

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    Industry Products

    What is the Commercial Real Estate Industry?

    This industry consists of companies that construct or develop commercial, industrial and multifamily residential property and establishments that provide commercial real estate services, including renting, leasing, managing, buying and selling real estate. Other related services, such as appraisals and consulting, are also included. Construction and activities related to utilities and energy, such as power plants or water treatment facilities, are excluded from the industry.

    Industry Products
    Construction
    Residential leasing
    Commercial leasing
    Sales and brokerage
    Property and asset management and consulting
    Other activities
    Industry Activities
    Leasing nonresidential buildings, structures and land
    Leasing mini warehouses and self-storage units
    Renting nonresidential real estate for others (i.e. agents or brokers)
    Selling and buying real estate for others (i.e. agents or brokers)
    Providing property management services
    Providing real estate appraisal and valuation services
    Providing real estate asset management services
    Commercial, industrial, apartment and municipal building construction
    Providing real estate listing services
    Providing real estate consulting services

    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
  • Value of private nonresidential construction
  • Consumer spending
  • Office rental vacancy
  • Yield on 10-year Treasury note
  • Corporate profit

  • Current Performance
  • Renewed demand, renewed growth
  • Industry landscape
  • Steady recovery
  • Chart: Revenue Growth

  • Industry Outlook
  • Investment conditions
  • Strengthening conditions
  • Service convergence
  • Threats and competition
  • Table: Commercial Real Estate Industry Revenue Outlook

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

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Wholesale Trade
  • Retail Trade
  • Finance and Insurance
  • Law Firms
  • Consumers

  • Key Selling Industries
  • Construction
  • Database & Directory Publishing
  • Information
  • Janitorial Services
  • Law Firms
  • Software Publishing

  • Products & Services
  • Construction
  • Commercial leasing
  • Property and asset management and consulting
  • Residential leasing
  • Sales and brokerage
  • Other activities
  • Chart: Commercial Real Estate Industry Products and Services Segmentation

  • Demand Determinants
  • Office space demand
  • Demand for retail and hotel space
  • Apartment demand
  • Municipal and industrial building demand

  • Major Markets
  • Office
  • Retail
  • Municipal and institutional
  • Residential
  • Industrial
  • Accommodation
  • Chart: Major Market Segmentation for the Commercial Real Estate Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesPurchasesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Real Estate

  • Basis of Competition
  • Commercial real estate services
  • Commercial and residential leasing
  • Construction
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Real Estate 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 Real Estate 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 Real Estate Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Value of Private Non-residential Construction (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.
  • 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.
  • 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 Real Estate:
    • 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 Real Estate 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 Real Estate, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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