|Last Quarterly Update:||1/9/2017|
|SIC Codes:||6512, 6513, 6514, 6515, 6517, 6519, 6531|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry buy, rent, or lease real estate, manage residential, commercial, and industrial properties, and provide other real estate related services, including appraisals. Major companies include CBRE Group, Host Hotels & Resorts, Realogy, and Simon Property Group (all based in the US), as well as Finatis (France), Mitsui Fudosan (Japan), Savills (UK), and Scentre Group (Australia).
Worldwide, real estate markets have improved around the world in recent years as many economies recover from the global financial crisis. Commercial real estate prices in 2015 approached record levels in cities around the world. The valuations of office buildings sold in London, Hong Kong, Osaka, and Chicago hit record highs in 2015, on a price-per-square foot basis, and reached post-2009 highs in New York, Los Angeles, Berlin, and Sydney, according to industry tracker Real Capital Analytics.
The US real estate industry includes about 295,000 companies with combined annual revenue of about $350 billion.
Demand for real estate is driven by population growth, personal income, employment rates, interest rates, and access to capital. The profitability of individual companies depends on property values and demand, which are both impacted by general economic conditions. Real estate companies also rely on the supply of investment capital. Large companies have competitive advantages based on their financial resources and broad geographic reach. Small companies can compete effectively by focusing on local or regional markets. The US industry is ...
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