The commercial real estate services category is expected to grow at a CAGR of 5.1% from 2023 to 2030. The rising inflation Fed interest rate, and the post-pandemic situation have slowed down the commercial real estate sector across the globe. However, with the normalization of COVID-19, companies plan to increase their physical presence. On the other hand, multifamily, and industrial asset classes have performed well.
In 2023, the Industrial segment of the commercial real estate category has continued to showcase strength. The demand for warehouse and distribution space has been bolstered by increasing e-commerce sales and disruptions in the supply chain. According to the National Association of Realtors April 2023 report, the industrial vacancy rate stands at a low of 4.3%. Additionally, the industrial rent growth rate remains robust, reaching 10.3%. Warehouses have experienced an impressive 11.7% growth in rental prices.
Commercial real estate service providers are focusing on adopting technology to improve property management, smooth property dealing processes, and increase customer experience. To achieve this, service providers are adopting technologies such as virtual reality (VR), augmented reality (AR), big data and analytics, and artificial intelligence. Property buying and selling websites, real estate management software, virtual reality, drones, and other tech devices, real estate crowdfunding platforms, and marketing automation are some of the recent trends that depict the technological adoption in this category.
Order your copy of the Commercial Real Estate Services Procurement Intelligence Report, 2023 - 2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
Companies are acquiring small players to increase their market penetration and global reach. For instance,
• In December 2022, CBRE Group acquired H2M Sverige AB a property management service company in Sweden. Post completion of the acquisition, H2M will operate as part of the CBRE Global Workplace Solutions (GWS) group and strengthens the presence of CBRE in the country.
• In October 2022, BBG, a commercial real estate service firm, acquired VSI Appraisal Group in Columbus. With this acquisition, BBG will enhance its presence in Columbus while adding affordable housing specialty to its portfolio of services.
Using drones to gather high-quality aerial images is a cutting-edge trend in the real estate industry. It offers a distinctive and influential viewpoint for property analysis. Drones are utilized across various real estate categories such as apartments, residential homes, vacant land, resorts, and commercial properties. With advanced in-drone camera technology, these unmanned aerial devices can capture videos, images, multiple overhead map images, and even 360-degree panoramas. This comprehensive approach provides additional information and transparency to prospective clients.
Commercial Real Estate Services Sourcing Intelligence Highlights
• Buyers in the commercial real estate category, such as businesses or investors, can exert significant bargaining power, particularly if there is a surplus of available properties. Buyers can negotiate favorable lease terms, request concessions, or shop around for alternative options. The level of buyer bargaining power depends on factors such as market conditions, demand and supply dynamics, and the availability of substitutes.
• Property management, common area management, utilities, security, and supply cost are some of the costs incurred in commercial real estate services.
• The average cost of appraising commercial buildings is USD 4,000 whereas big buildings may cost up to USD 15,000 or more.
• The category can be described as mature with several active property owners and buyers. Maintaining long-term broker relationships is recommended to get better property deals.
List of Key Suppliers
• CBRE
• Cushman & Wakefield
• Lee & Associates
• Savills
• Marcus & Millichap
• Colliers
• Avison Young
• Newmark Knight Frank
• TCN Worldwide
• RE/MAX, LLC
Browse through Grand View Research’s collection of procurement intelligence studies:
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Commercial Real Estate Services Procurement Intelligence Report Scope
• Commercial Real Estate Services Category Growth Rate: CAGR of 5.1% from 2023 to 2030
• Pricing growth Outlook: 3% - 4% (Annually)
• Pricing Models: Full Service Outsource Pricing, Price for services offered, Competition based pricing
• Supplier Selection Scope: End-to-end service, cost and pricing, compliance, service reliability, and scalability
• Supplier Selection Criteria: Types of properties, quality, number of services offered, client relationship, track record and reputation, regulatory compliance, and others
• Report Coverage: Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
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