Aedes Competition
Now Viewing Aedes's competition in: Commercial Real Estate Brokerage and Management
Recent Developments
US Nonresidential Construction Growth Continues - The value of US nonresidential construction put in place, a driver of demand for commercial real estate brokerage and management, rose 11.6 percent in the first four months of 2008 compared to the same period in 2007. Lodging construction rose 41.8 percent, and office construction rose 16.7 percent. Many experts say that growth in nonresidential construction may decline if the US economy continues to weaken.
Office Vacancy Rate Stable in 2008 - The US office vacancy rate, an indicator of demand for commercial real estate brokerage and management services, will be virtually flat in 2008 compared to 2007, according to Grubb & Ellis, as weak economic conditions will keep US job growth low or flat. Office space construction is forecast to rise 22 percent in 2008 compared to 2007, about equal to growth in demand.
Weak Dollar Creates Buying Opportunities - The falling value of the US dollar has created an opportunity for foreign entities to buy prime pieces of US commercial real estate. The 50-story General Motors Building in New York City was sold in May 2008 for a record-breaking $2.8 billion to a US real estate firm backed by investors from Dubai, Kuwait, and Qatar. The Chrysler Building in New York City may soon be sold too, with a 75 percent stake in the building going to sovereign wealth fund Abu Dhabi Investment Authority, according to The Wall Street Journal.
Competitive Landscape
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. Average annual revenue per worker is over $200,000 for brokers and agents, but under $100,000 for property managers, reflecting the more labor-intensive nature of the work.
Full Industry Overview For Commercial Real Estate Brokerage and Management
Commercial Real Estate Brokerage and Management Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US real estate businesses, which includes commercial brokerage and property management, is forecast to grow at an annual compounded rate of 4.7 percent between 2007 and 2012.
Real Estate Growth Steadies
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Depends on business occupancy
- Need efficient use of labor
- Risk: Slower economy cuts commercial space
Industries Where Aedes Competes
- Real Estate
- Residential Property Investment
- Commercial Property Investment
- Commercial Property Management
- Commercial Real Estate Development
- Residential Property Management
