Global Commercial Real Estate - Market Research Report (2014-2029)
New York, United States
Last Updated: June 2024
K6111-GLRevenue
$4.3tr
Past 5-Year Growth
Profit
$XX.Xbn
Employees
18m
Businesses
7m
Wages
$XXX.Xbn
Global Commercial Real Estate industry analysis
The Global Commercial Real Estate industry has declined over the past five years. Specifically, investor confidence slightly declined over the same period as COVID-19 severely constricted demand. As a result, industry revenue is expected to slightly decline an annualized 2.5% to $4.3 trillion over the five years to 2023, including an anticipated increase of 1.6% in 2023 as the economy recovers from the coronavirus pandemic.The growth of a country's economy tends to boost industry revenue since business expansions and higher consumer spending often creates demand for industry services, such as office leasing, sales and brokerage services. The strong expansion of Asian economies through investments and increasing consumer spending have aided revenue growth over much of the current period. However, this industry is dominated by developed economies and, consequently, the global industry's direction is swayed by these regions' economic performance. Political tensions in these markets have affected the level of investment since investors can be discouraged when uncertainty in economic outlooks rises. As a result, the industry is susceptible to turmoil that has a global reach, such as trade conflicts and pandemics. This has contributed to a slight revenue decline during the current period. Consequently, the average industry profit margin has narrowed due to the coronavirus pandemic. More specifically, in 2020, the average industry profit margin, measured as earnings before interest and taxes, dipped to 6.8% in 2023.The industry will rebound over the next five years as investor uncertainty shrinks as the threat of the coronavirus pandemic wanes. Increasing aggregate private investment and consumer spending will drive industry revenue growth as they fuel the expansion of business and retail operations. The global commercial real estate market will increasingly shift investments toward burgeoning countries, such as India and China, where consistent growth will likely be apparent over the coming years. Overall, industry revenue is forecast to grow an annualized 1.3% to $4.6 trillion over the five years to 2028.
Trends and Insights
- Industry performance is primarily based on business activity and tends to follow the global economy's performance. As a result, the level of investment is a sound measure of business activity and expansion.
- The Global Commercial Real Estate industry comprises many companies operating in various markets and service segments, including brokerage, property and facilities management and valuation consulting. Companies vary in structure, size, geographic location and technology employed.
- The geographical distribution of establishments in the Global Commercial Real Estate industry reflects the size and distribution of world GDP. As measured by GDP, areas with high degrees of wealth make up most industry activity.
- Most companies only operate in a small segment of the industry. Overall industry competition is therefore low.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 3.3 % over the past five years, to reach an estimated $4.3tr in 2024.
Trends and Insights
The US market has recovered
- Despite strong performances from other countries, the United States remains the world's largest commercial real estate market.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The United States will drive growth in the Americas region
- The need for new commercial real estate space will likely rise as the US economy recovers.
Biggest companies in the Global Commercial Real Estate
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
CBRE Group Inc. | 30,457.8 | N/A | N/A | |
Jones Lang LaSalle Incorporated | 21,755.6 | N/A | N/A |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Other leasing, Commercial leasing and Residential leasing. Other leasing is the largest segment of the Global Commercial Real Estate.
Trends and Insights
Demand for commercial leasing increases as businesses expand
- Property owners in this segment generate revenue through rental income and related fees.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Global Commercial Banks
Complementors
- Global Residential Building Construction
- Global Non-residential Building Construction
- Global Management Consultants
International industries
- Commercial Leasing in the US
- Storage & Warehouse Leasing in the US
- Real Estate Sales & Brokerage in the US
- Property Management in the US
- Real Estate Appraisal in the US
Table of Contents
About this industry
Industry definition
Operators in the Global Commercial Real Estate industry buy, sell, rent and operate owned or leased real estate, including income-generating residential properties (e.g. apartment buildings) and commercial properties (e.g. retail malls, hotels, restaurants and casinos). The industry also includes real estate services, such as brokerage, property management, valuation and other consulting services.
What's included in this industry?
Leasing nonresidential buildings, structures and landLeasing mini warehouses and self-storage unitsRenting nonresidential real estate for others (e.g. agents and brokers)Selling real estate for others (e.g. agents and brokers)Providing property management servicesProviding real estate appraisal and valuation servicesProviding real estate asset management servicesProviding real estate listing servicesProviding real estate consulting servicesCompanies
CBRE Group Inc.Jones Lang LaSalle IncorporatedPurchase this report to view all 2 major companies in this industry.
Related Terms
CLASS ALEADERSHIP IN ENERGY AND ENVIRONMENT DESIGN (LEED)LOAN-TO-VALUE RATIOSOCCUPANCY RATEREAL ESTATE INVESTMENT TRUST (REIT)RENTAL AGREEMENTVACANCY RATEPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Industry performance is primarily based on business activity and tends to follow the global economy's performance. As a result, the level of investment is a sound measure of ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The Global Commercial Real Estate industry comprises many companies operating in various markets and service segments, including brokerage, property and facilities management ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The geographical distribution of establishments in the Global Commercial Real Estate industry reflects the size and distribution of world GDP. As measured by GDP, areas with ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Business Locations Charts
- Share of global output by region in 2024
- Share of population compared to output in each region in 2024
- Data tables
- Share of global output by region in 2024
- Detailed analysis
- Geographic spread of the industry across Global, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Most companies only operate in a small segment of the industry. Overall industry competition is therefore low.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The Global Commercial Real Estate industry is highly fragmented as it comprises many different real estate service segments, which are also not highly concentrated. As a resu...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of CBRE Group Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Jones Lang LaSalle Incorporated's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for CBRE Group Inc., and factors influencing its performance in the industry
- Description and key data for Jones Lang LaSalle Incorporated, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Global Commercial Real Estate industry comprises developed and developing economies with different laws on land development, habitability and building code. Restrictions ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Cost structures may vary widely on a company-by-company basis across the industry. Those companies that offer property management or valuation and consulting services tend to...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources globally include:
- United Nations Comtrade
- Organization for Economic Cooperation & Development
- World Bank
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Global Commercial Real Estate industry in Global in 2024?
The market size of the Global Commercial Real Estate industry in Global is $4.3tr in 2024.
How many businesses are there in the Global Commercial Real Estate industry in 2024?
There are 7m businesses in the Global Commercial Real Estate industry in Global, which has grown at a CAGR of 1.1 % between 2019 and 2024.
Has the Global Commercial Real Estate industry in Global grown or declined over the past 5 years?
The market size of the Global Commercial Real Estate industry in Global has been declining at a CAGR of 3.3 % between 2019 and 2024.
What is the forecast growth of the Global Commercial Real Estate industry in Global over the next 5 years?
Over the next five years, the Global Commercial Real Estate industry in Global is expected to grow.
What are the biggest companies in the Global Commercial Real Estate market in Global?
The biggest companies operating in the Global Commercial Real Estate market in Global are CBRE Group Inc. and Jones Lang LaSalle Incorporated
What does the Global Commercial Real Estate in Global include?
Leasing nonresidential buildings, structures and land and Leasing mini warehouses and self-storage units are part of the Global Commercial Real Estate industry.
Which companies have the highest market share in the Global Commercial Real Estate in Global?
The company holding the most market share in Global is CBRE Group Inc..
How competitive is the Global Commercial Real Estate industry in Global?
The level of competition is moderate and steady in the Global Commercial Real Estate industry in Global.
