Industry operators have adapted to evolving consumer preferences to meet demand
New York, NY (PRWEB) May 20, 2014
The Property Management industry provides a variety of services related to the management of residential and nonresidential properties, including apartments, industrial facilities, office towers and retail spaces. These services include collecting rent, screening tenants and scheduling maintenance. With its heavy reliance on business conditions and residential and nonresidential development, the industry faced a slowdown in 2009, as the US recession finally made its way north to Canada. However, property managers persevered through the economic downturn, with improving construction markets expected to cause the industry to grow at an average annual rate over the five years to 2014. Fears over a housing bubble are expected to mitigate industry growth in 2014, when the industry is expected to slightly grow as investment remains slightly cautious.
In 2009, economic conditions deteriorated quickly, with unemployment skyrocketing and disposable incomes falling. These factors caused corporate profit to plummet that year. With consumers and businesses cash-strapped, business activity has slowed dramatically. As such, apartment and commercial building vacancies shot up while construction on new residential and nonresidential buildings was put on hold. Despite these challenges, according to IBISWorld Industry Analyst Jeremy Edwards, “property managers still posted positive revenue growth in 2009 thanks to struggling property owners looking to outsource management services to the industry as a means of cutting their own expenses.” The industry also adopted its own cost-cutting initiatives in 2009, closing offices and laying off employees. “These moves helped preserve profit margins, which are expected to slightly increase,” says Edwards.
The Property Management industry is highly fragmented. Over the next five years, the industry will enjoy steady growth as the unemployment rate continues to drop and business activity picks up. These factors will bolster demand for residential and commercial real estate and related management services. In the five years to 2019, IBISWorld expects industry revenue to increase at an annualized rate. Profit margins are also set to expand, albeit modestly, as the industry increases its use of property management software, which improves the productivity of employees by allowing them to automate many day-to-day functions, such as tenant invoicing.
For more information, visit IBISWorld’s Property Management in Canada industry report page.
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IBISWorld industry Report Key Topics
The Property Management industry manages residential and nonresidential real estate for others. Property management responsibilities relate to the overall operation of the property, including maintenance, rent collection, trash removal, security and some renovation activities. Firms may also help manage a property's accounting, but operations relating to the transactions of properties or real estate investments are not included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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