Overview

Leases more: Declining homeownership is expected to sustain industry demand

The Property Management 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.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$77bn
Annual Growth
12-17
4.4%
Annual Growth
17-22
Profit
Employment
781,990
Business
263,580

Industry Threats & Opportunities

  • Economic recovery improved the commercial sectors, causing demand for office space to exceed supply, curtailing office rental vacancy
  • Uncertain corporate profit ensures that businesses choose to rent over purchase office space
  • Low interest rates are leading property developers to invest in new housing stock
  • Industry Analysis & Industry Trends

    The need for rental markets over the five years to 2017 provided a large boost to the Property Management industry. Over the past five years, the US economy has been primarily focused on recovery. At the residential level, rental vacancy rates declined steadily due to various hiccups in growth. These hardships proved favorable for renters, explaining vacancy rate declines during the period. On the opposite side of the spectrum, recovery improved the commercial sectors, causing demand for office space to exceed supply, curtailing office rental vacancy during the five-year period. Over the five years to 2022, the value of residential construction is expected to continue rising, expanding housing stock and lowering rental demand.

    Industry Report - Industry SWOT Analysis Chapter

    Industry activity typically fluctuates on a cyclical basis during the medium term, with annual movements largely dependent on the pace of general economic growth, employment growth, property values, private investment and rental yields. Over the 10 years to 2022, industry value added (IVA), a measure of the industry's contribution to the overall economy, is expected to rise at an annualized rate of 2.8%, while US GDP is forecast to rise at an annualized rate of 2.1% during the same period. Growth in line with the overall economy typically suggests that an industry is in the mature stage of its economic life cycle.

    Products and services have essentially remained the same for many years. However, the outsourcing of corporate real estate activities provides a growing niche market. In

    Additional Insights for the Property Management Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Property Management Industry are

  • Having contacts within key markets
  • Having a well-defined strategy/goal
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Corporate profit and Rental vacancy rates in the Property Management industry impact industry performance..

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    Industry Products

    What is the Property Management Industry?

    Companies in this industry manage residential and nonresidential real estate for property owners. Property management responsibilities relate to the overall operation of a property, including maintenance, rent collection, trash removal, security and some renovation activities. Industry players may also help manage a property’s accounting, but operations related to the transactions of properties or real estate investments are not included in this industry.

    Industry Products
    Residential property management
    Nonresidential property management
    Land management
    Real estate brokerage
    Construction
    Industry Activities
    Collecting rent
    Managing facilities maintenance services
    Managing security
    Managing trash and recycling collection
    Property accounting
    Legally representing property owners
    Finding and screening tenancy applicants
    Coordinating repair contractors

    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
  • Corporate profit
  • Rental vacancy rates
  • Homeownership rate
  • Office rental vacancy

  • Current Performance
  • Residential rental boost
  • Nonresidential markets
  • Industry expansion
  • Chart: Revenue Growth

  • Industry Outlook
  • Residential rental demand falls
  • Transition to nonresidential markets
  • Industry landscape
  • Table: Property Management Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Property Management Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Apartment Rental
  • Commercial Leasing
  • Storage & Warehouse Leasing
  • Land Leasing

  • Key Selling Industries
  • Conveyancing Services
  • Electricians
  • Heating & Air-Conditioning Contractors
  • Janitorial Services
  • Landscaping Services
  • Painters
  • Plumbers

  • Products & Services
  • Residential property management
  • Nonresidential property management
  • Other
  • Real estate brokerage
  • Land management
  • Construction
  • Chart: Property Management Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential properties
  • Other nonresidential properties
  • Industrial buildings
  • Commercial
  • Office buildings
  • Chart: Major Market Segmentation for the Property Management Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchases and marketingRent, utilities and depreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Property Management

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Property Management Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Property Management 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 Property Management Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Rental vacancy rates (2008-2022)

  • 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 location, tenancy, amenities and overall desirability.
  • Dwelling
  • A place of residence, such as an apartment or house.
  • Real Estate Investment Trust
  • A legal entity that uses pooled investor capital to purchase and manage income property or mortgage loans. To qualify as an 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 Property Management:
    • 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 Property Management 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 Property Management, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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