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 and selling of commercial real estate, in addition to managing nonresidential properties for owners. Major companies include CBRE Group, Cushman & Wakefield, Eastdil Secured, Jones Lang LaSalle, and Newmark Grubb Knight Frank, (all US-based), as well as Countrywide and Savills (both in the UK).

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 about $250,000 for brokers and agents, but about $120,000 for property managers, reflecting the more labor-intensive nature of property management. The industry is highly fragmented: the 50 largest companies account for one-quarter of industry revenue.

Products, Operations & Technology

Commercial real estate brokers and agents buy and sell commercial real estate property and lease space within commercial buildings. 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.