Commercial Real Estate Brokerage

Commercial Real Estate Brokerage

Brief Excerpt from Industry Overview Chapter:

Companies in this industry act as agents in the buying, leasing, and selling of commercial real estate. Major companies include CBRE, Cushman & Wakefield, JLL, and Newmark Knight Frank (all based in the US), as well as Colliers (Canada), Countrywide and Savills (both based in the UK), and E-House China Holdings.

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 range of services in multiple markets. Small companies can compete effectively by specializing in local markets. The US industry is fragmented: the 50 largest firms account for about 30% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include agent and brokerage services for the sale and rental of real estate. Services related sales and rentals of residential real estate account for about 75% of industry revenue, while sales and rentals of nonresidential real estate account for about 20%. Other services include property management services, sale and rental of land, and nonresidential building property management.