Global Commercial Real Estate Industry Market Research Report from IBISWorld has Been Updated

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Emerging markets will continue to bolster overall revenue growth, as unemployment, business growth and construction activity improve. For these reasons, industry research firm IBISWorld has updated a report on the Global Commercial Real Estate industry to its growing report collection.

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Expanding business and retail operations across the globe will drive revenue growth

The Global Commercial Real Estate industry is deeply integrated with the world economy at large. According to IBISWorld industry analyst Matthew MacFarland, “The industry includes construction, real estate brokerage, valuation, sales, management, consulting and appraisal.” It is driven by macroeconomic trends and shifts mostly among developed nations with dense and valuable urban areas that include a large volume of office space and multifamily residential buildings. More specifically, the commercial real estate (CRE) markets in each country or region are determined by office vacancy rates, property values, prevailing interest rates and unemployment levels.

The global recession caused notable contraction in the industry in 2009, as unemployment rose and property values fell in key mature markets like the United States, Europe and Japan. “The European sovereign debt crisis has slowed investment in several member states and hampered more energetic economic growth in more stable countries like Germany and France,” says MacFarland. During the credit crunch, financing became severely constrained, and real estate transaction volumes and new construction contracted sharply. These trends have led to marginal industry growth in the five years to 2013; during this time, industry revenue is expected to grow at an annualized rate of 0.4% to $5.3 trillion. Since then, central banks across the globe have helped stimulate economic recovery and rekindle investment into the real estate sector by curbing interest rates. Booming commercial real estate activity in Asia (particularly in China) has also helped to offset industry declines. China's fast-growing population, economy and consumer base have triggered construction of shopping centers, hotels, apartment buildings and industrial spaces at an accelerated rate. The stabilization of mature markets in the United States, Japan and Germany has anchored this growth. As a result, industry revenue is expected to grow a solid 2.9% in 2013.

The Global Commercial Real Estate industry is highly diverse, as it comprises firms that operate in 36 countries and provide a wide variety of real estate activities, including brokerage, property and facilities management, research and analytics, consulting, valuation, appraisal, real estate development, property subdivision and asset management. Most industry operators are small, independent firms with few employees. According to OECD data and IBISWorld estimates, non-employers or self-owned firms are expected to account for about 29.3% of all industry firms in 2012 (latest available data).

During the five years to 2018, industry revenue is forecast to continue to grow. Expanding business and retail operations will drive industry growth, as unemployment declines in mature markets and consumer disposable income and corporate profit improve in developing economies. While the slow growth of Europe and Japan will limit more rapid increases in industry revenue, the global CRE market will shift more and more toward China and India, where consistent growth will be found throughout the coming years.

For more information, visit IBISWorld’s Global Commercial Real Estate industry report page.

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IBISWorld industry Report Key Topics

This industry buys, sells, rents and operates 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 and property management. Other activities include appraisal services and real estate subdivision and property development.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on nearly every US and Global industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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