Commercial Real Estate Brokerage & Management Industry Overview
Excerpt from Commercial Real Estate Brokerage & Management Report
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 Grubb Knight Frank, and Colliers International (all US-based), as well as Countrywide and Savills (both in the UK) and Mitsui Fudosan (Japan).
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 also provide valuation and advisory services. Most owners of commercial real estate property, including individuals, companies, and real estate investment trusts (REITs), don't occupy their property but instead lease space to others.