Asset management consulting services will expand in popularity as the economy improves
Los Angeles, CA (PRWEB) February 02, 2015
Real estate asset management and consulting services have a buyer power score of 3.1 out of 5. This score represents shared negotiating power among buyers and suppliers. “Although buyers benefit from low market share concentration,” says IBISWorld analyst Ian Buchanan, “the service’s high level of specialization and lack of practical substitutes available restrict buyer power.”
Many suppliers operate within this market, and there are no major vendors that account for a significant percentage of total market revenue. As such, market share concentration is low, which, when paired with a high level of saturation in the market, leads to heightened competition among suppliers. Due to increased competition, suppliers are pressured to offer reduced prices to avoid being undercut by a competitor, strengthening buyer power. Major suppliers include Altisource Portfolio Solutions, CBRE Group Inc. and Realogy Corp.
Unfortunately for buyers, the benefits are slightly offset by a high level of customization involved with the market’s services. Real estate asset management and consulting services must be tailored to accommodate the buyer’s specific properties. Services will need to be performed differently based on the location, the type of property and the size of the property. Suppliers must have extensive knowledge that pertains specifically to the buyer's property being managed. As a result, says Buchanan, “buyers will have difficulty in sourcing multiple vendors that can provide equally effective services for their particular operation, which limits the number of suppliers to choose from and diminishes buyer power.”
Additionally, buyers will find that there are few alternatives to procuring these services when searching for methods of managing their assets. Knowing that buyers have few other options, suppliers gain pricing leverage and buyer power is limited further. For more information, visit IBISWorld’s Real Estate Asset Management & Consulting Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of real estate asset management and consulting services. Financial institutions and realtors provide these services to help clients manage their properties and obtain the highest value from their investments. This report does not include real estate valuation services or real estate title listing services.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.