Commercial Real Estate Management Industry Profile

Companies in this industry manage commercial real estate. Major companies include CBRE, Cushman & Wakefield, and JLL (all based in the US), as well as Colliers (Canada), IWG (Switzerland), Lendlease (Australia), and Mitsubishi Estate (Japan).

The professionally managed global real estate investment market has reached about $15 trillion in 2022, according to MSCI. Countries such as the United States, the United Kingdom, Germany, Australia, Brazil, Spain, Italy, Canada, and Japan have made significant contributions to the non-residential sector, according to the forecast of Technavio.

The US commercial real estate management industry includes about 18,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $27 billion.

Commercial real estate brokers and sales agents are covered in a separate industry profile. Some companies offer both brokerage and management services.

COMPETITIVE LANDSCAPE

Demand is driven by commercial real estate occupancy levels. The profitability of individual companies depends on efficient operations and effective customer service. Large companies have advantages in performing a range of management services in multiple markets. Small companies can compete effectively by specializing in local markets. The industry is fragmented: the top 50 companies account for about 40% of revenue.

Companies that provide commercial property development, investment, construction, and brokerage services may also conduct management services and thus compete with companies in the commercial real estate management industry.

PRODUCTS, OPERATIONS & TECHNOLOGY

Commercial real estate managers oversee the operations of nonresidential property, such as office ...