Top floor: Strong demand from retail and office property operators has driven revenue growth

The Commercial Property Management industry has recorded strong revenue growth over the past five years, largely due to strong demand from retail property operators. Industry revenue is expected to increase at an annualised 10.3% over the five years through 2018-19, to $1.8 billion. This includes anticipated revenue growth of 2.9% in the current year, with growth slowing due to lower demand from office property operators and decreasing occupancy rates.The industry services commercial properties, which encompass retail, industrial and office buildings. Commercial property managers generate commissions from the rental income earned by property owners. Therefore, any decline in rental income reduces industry commission more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Strong demand from office property operators has contributed to revenue growth
  • More office space has been required as Australia transitions to a service-based economy
  • Enterprise numbers will decline as larger players consolidate their market shares
  • Industry Report - Starting a New Business Chapter

    Barriers to entry in the Commercial Property Management industry are low. The industry is highly labour-intensive and requires relatively small amounts of initial capital expenditure. Industry regulation is moderate and is usually concerned with licensing and qualification. Consequently, new industry businesses can establish operations relatively easily. However, high competition among established firms makes it difficult for new firms to attract clients. Since the services provided by industry competitors are similar, new entrants can struggle to differentiate themselves. Furthermore, reputable companies have attained brand recognition that is often synonymous with an area or type of building. Att...purchase to read more.

    Additional Insights for the Commercial Property Management Industry

    IBISWorld has determined the most important Key Success Factors for the Commercial Property Management are:

  • Ability to effectively communicate and negotiate
  • Market research and understanding
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Demand from office property operators and Number of businesses in the Commercial Property Management industry impact industry performance..

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    What's in this report

    What is the Commercial Property Management Industry?

    Industry firms manage commercial real estate on behalf of their clients. Property management responsibilities include tenant management and rent collection. Firms may also help manage a property’s accounting. Operations relating to property transactions or real estate investments are not included in the industry.

    Industry Products
  • CBD office management
  • Shopping centre management
  • Other retail property management
  • Warehouse management
  • Suburban and regional office management
  • Other commercial property management
  • Industry Activities
  • Managing property
  • Managing office property
  • Managing industrial property
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from office property operators
  • Number of businesses
  • Business confidence index
  • Demand from retail property operators

  • Current Performance
  • Downstream markets
  • Comparison with residential property
  • Chart: Revenue Growth

  • Industry Outlook
  • Office property
  • Other commercial property markets
  • Licensing concerns
  • Table: Commercial Property Management Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Property Management Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Office Property Operators
  • Retail Property Operators
  • Industrial and Other Property Operators

  • Key Selling Industries
  • Computer and Software Retailing
  • Investigation and Security Services
  • Professional Services
  • Waste Treatment and Disposal Services

  • Products & Services
  • CBD office management
  • Other commercial property management
  • Shopping centre management
  • Suburban and regional office management
  • Other retail property management
  • Warehouse management
  • Chart: Commercial Property Management Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Office building operators
  • Retail building operators
  • Factory and industrial building operators
  • Other markets
  • Entertainment and leisure building operators
  • Chart: Major Market Segmentation for the Commercial Property Management Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Property Management

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Property Management Industry

  • Industry Globalization
    LPI (Australia) Holdings Pty Limited, CBRE Pty Limited,
  • Table: LPI (Australia) Holdings Pty Limited - financial performance
  • Table: CBRE Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Property Management Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Commercial Property Management Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Occupancy Rate
  • The ratio of occupied to unoccupied commercial property.
  • Price Discovery
  • The process of determining the most accurate market price for a good or service. In terms of property, this usually refers to the potential sale price.
  • Rental Yield
  • A measure of how much rental income a leased property generates as a percentage of its total value.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Commercial Property Management market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Commercial Property Management:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Commercial Property Management market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Commercial Property Management, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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