Commercial Real Estate Management

Commercial Real Estate Management

Brief Excerpt from Industry Overview Chapter:

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).

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.

PRODUCTS, OPERATIONS & TECHNOLOGY

Commercial real estate managers oversee the operations of nonresidential property, such as office buildings and office parks, retail space and shopping centers, and warehouses and industrial buildings. Some commercial buildings also include apartments; buildings that mix apartments, offices, and retail space ("mixed-use") are typically more difficult to manage. Though some owners of commercial property perform their own property management, most contract out such services. "Property management" generally applies to services provided to non-occupying property investors, while "facility management" often refers to services provided to owner-occupiers. Major services include property management and nonresidential building property management, which accounts for about 90%. Other services also include land property management.