Commercial Real Estate in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: July 2024
NAICS OD4070Revenue
$1.3tr
Past 5-Year Growth
Profit
$XX.Xbn
Employees
3m
Businesses
3m
Wages
$XXX.Xbn
Commercial Real Estate in the US industry analysis
The Commercial Real Estate industry comprises a diverse set of operators that specialize in a variety of real estate activities, including brokerage, property and facilities management, research and analytics, consulting, valuation, appraisal, construction and asset management. Changes within the commercial real estate market, including fluctuations in vacancy rates, property values and credit activity, influence demand for industry services. During periods of economic downturn, low business activity lessens demand for additional office buildings, retail centers, hotels, apartment buildings, manufacturing plants and other commercial spaces. As property owners and developers do not require new space, demand for commercial real estate falls. However, since most projects take several years to complete, there is a lag between demand and building development.
Trends and Insights
- Commercial real estate revenue was growing before the COVID-19 pandemic. A strong macroeconomic environment and low interest rates boosted the industry.
- Construction has been hampered by supply chain issues. These issues have increased costs at the same time as interest rates have risen, making it harder to pay those costs.
- Business locations broadly have the same spread as the population. The wide variety of industry operations means most populations are a source of demand.
- 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 1.0 % over the past five years, to reach an estimated $1.3tr in 2024.
Trends and Insights
Commercial real estate saw strong pre-pandemic growth
- In 2018 and 2019, a strong macroeconomic environment—as indicated by rising consumer spending and corporate profit—lead to growth in the commercial real estate industry.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
High inflation and rising interest rates continue to influence broader demand
- As long as high inflation remains high, interest rates will remain elevated, depressing growth in the commercial real estate industry.
Biggest companies in the Commercial Real Estate in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Cbre Group, Inc. | 19,180.4 | 1,086.3 | 5.7 | |
Simon Property Group, inc. | 5,230.3 | 2,619.5 | 50.1 | |
Turner Construction Company | 406.6 | 15.7 | 3.9 |
To view the market share and analysis for all 3 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 Construction, Residential leasing and Commercial leasing. Construction is the largest segment of the Commercial Real Estate in the US.
Trends and Insights
Construction grows steadily, as economic recovery proves vital
- This segment includes building and remodeling activity of commercial properties, typically done by general contractors.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Apartment Rental in the US
- Real Estate Sales & Brokerage in the US
Complementors
- Land Development in the US
- Industrial Building Construction in the US
- Commercial Building Construction in the US
International industries
- Global Commercial Real Estate
- Real Estate Services in Australia
- Real Estate Services in New Zealand
- Commercial Real Estate in China
Table of Contents
About this industry
Industry definition
The Commercial Real Estate industry consists of companies that construct or develop commercial, industrial and multifamily residential property or provide commercial real estate services including renting, leasing, managing, buying and selling real estate. Other related services, such as appraisals and consulting, are also included. Construction and activities related to utilities and energy, such as power plants or water treatment facilities, are excluded from the industry.
What's included in this industry?
Leasing nonresidential buildings, structures and landLeasing mini warehouses and self-storage unitsRenting nonresidential real estate for others (i.e. agents or brokers)Selling and buying real estate for others (i.e. agents or brokers)Providing property management servicesProviding real estate appraisal and valuation servicesProviding real estate asset management servicesCommercial, industrial, apartment and municipal building constructionProviding real estate listing servicesProviding real estate consulting servicesCompanies
Cbre Group, Inc.Simon Property Group, inc.Turner Construction CompanyPurchase this report to view all 3 major companies in this industry.
Related Terms
CLASS A BUILDINGLEADERSHIP IN ENERGY AND ENVIRONMENT DESIGN (LEED)REAL ESTATE INVESTMENT TRUST (REIT)VACANCY RATEIndustry Code
NAICS 531 - Commercial Real Estate in the US
Performance
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
Commercial real estate revenue was growing before the COVID-19 pandemic. A strong macroeconomic environment and low interest rates boosted the industry.
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
Construction has been hampered by supply chain issues. These issues have increased costs at the same time as interest rates have risen, making it harder to pay those costs.
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
Business locations broadly have the same spread as the population. The wide variety of industry operations means most populations are a source of demand.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, 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
As a large and varied industry, there are many companies. None accounts for more than 2.0% of revenue.
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 Simon Property Group, inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Turner Construction Company'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 Simon Property Group, inc., and factors influencing its performance in the industry
- Description and key data for Turner Construction Company, 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
Office rental vacancies are expected to peak in 2023. Falling vacancies will drive demand for the office segment.
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
The construction sector is facing increased purchase costs. Widespread supply chain issues in the wake of the pandemic have driven up the cost of materials.
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
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- 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 in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
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 Commercial Real Estate in the US industry in United States in 2024?
The market size of the Commercial Real Estate in the US industry in United States is $1.3tr in 2024.
How many businesses are there in the Commercial Real Estate in the US industry in 2024?
There are 3m businesses in the Commercial Real Estate in the US industry in United States, which has grown at a CAGR of 2.2 % between 2019 and 2024.
Has the Commercial Real Estate in the US industry in United States grown or declined over the past 5 years?
The market size of the Commercial Real Estate in the US industry in United States has been declining at a CAGR of 1.0 % between 2019 and 2024.
What is the forecast growth of the Commercial Real Estate in the US industry in United States over the next 5 years?
Over the next five years, the Commercial Real Estate in the US industry in United States is expected to grow.
What are the biggest companies in the Commercial Real Estate in the US market in United States?
The biggest companies operating in the Commercial Real Estate market in United States are Cbre Group, Inc., Simon Property Group, inc. and Turner Construction Company
What does the Commercial Real Estate in the US in United States include?
Leasing nonresidential buildings, structures and land and Leasing mini warehouses and self-storage units are part of the Commercial Real Estate in the US industry.
Which companies have the highest market share in the Commercial Real Estate in the US in United States?
The company holding the most market share in United States is Cbre Group, Inc..
How competitive is the Commercial Real Estate in the US industry in United States?
The level of competition is moderate and increasing in the Commercial Real Estate in the US industry in United States.
