Melbourne, Australia (PRWEB) June 16, 2013
The Commercial Real Estate Agents industry deals with the selling, auctioning and leasing of commercial property in Australia. Over the past five years, the industry has struggled to respond to circumstances arising from the global financial crisis that led to high levels of volatility in the industry and several years of significant revenue decline. According to IBISWorld industry analyst Craig Shulman, “these circumstances arose as business sentiment dropped and lending standards escalated, leading to many businesses only having opportunities to invest in low-risk ventures”. As property upgrades would be seen as a secondary priority in many cases, sale volumes dropped significantly during this period. Furthermore, the recovery has been slow, with a false dawn occurring during 2009-10.
As many players involved in the Commercial Real Estate Agents industry are also involved in commercial property management, the emphasis of agent activities has fallen to the wayside. This has been as property management increases in stature as companies seek to outsource non-core activities in this economic environment and players attempt to obtain revenue from more stable revenue streams. This motivation has also led to a stronger emphasis on leasing activities. Consequently, revenue is estimated to have decreased at an annualised rate of 5.8% over the past five years through 2012-13. Shulman adds, “revenue is expected to decrease 8.5% in 2012-13 to reach $731.2 million”.
As commercial property in Australia is quite diverse, agent variety is high. There are well-known major players that tend to deal with larger commercial properties, but there are a rising number of new players entering the industry as residential real estate fares less well than commercial real estate. This trend is leading many residential property players to diversify their operations and enter the commercial property real estate game as well. The Commercial Real Estate Agents industry exhibits a medium level of market share concentration. The top four players in the industry are Colliers International Holdings, LPI, CBRE and Knight Frank Australia.
Over the five years to 2017-18, the industry is expected to benefit from an upswing in demand from commercial property, but new factors will restrict this growth. For more information, visit IBISWorld’s Commercial Real Estate Agents report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry act as intermediaries for others during the sale, purchase or rental of commercial real estate. In addition to buyer representation, commercial real estate brokers may also lease properties out.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.