Commercial Real Estate Brokerage & Management
Companies in this industry act as agents in the buying, leasing and selling of commercial real estate, in addition to managing nonresidential properties for owners. Major companies include CBRE Group, Cushman & Wakefield, Jones Lang LaSalle (JLL), Newmark Knight Frank, and Colliers International (all US-based), as well as Countrywide and Savills (both in the UK) and Mitsui Fudosan (Japan).
Global commercial property sales, which drive demand for this industry, have been rising steadily. Direct commercial real estate investment exceeded $730 billion in 2018, according to JLL. The improving global outlook is leading real estate investors to look outside their home markets for opportunities across the spectrum of locations and sectors.
The US commercial real estate brokerage and management industry includes about 35,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $38 billion.
The industry includes sales and leasing brokers and agents for nonresidential property, as well as property managers. Many companies combine these functions. Brokers and property managers also are covered individually in separate profiles. Owners of commercial property who perform their own leasing and property management aren't included in this industry. Commercial real estate financing is not included in this industry.
Demand, which is driven by the volume of commercial real estate transactions, is heavily influenced by real estate vacancy rates. The profitability of individual companies depends on efficient operations. Large companies have advantages in performing a full range of services in multiple markets. Small companies can compete effectively by specializing in local markets. The US commercial property management segment is highly fragmented: the 50 largest companies account for about 20% of industry revenue. The commercial brokerage segment is concentrated: the 50 largest companies account for 50% of industry revenue.
Products, Operations & Technology
Commercial real estate brokers and agents help clients buy and sell commercial real estate property and lease space within commercial buildings. They may
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms