Global Commercial Real Estate Brokerage and Management Market Grows Steadily at a CAGR of 7.2%

Introduction

Commercial real estate brokerage management consists of properties such as industrial, land, flex, retail space, shopping complexes, and others. Brokerage management offers valuation services, advisory services, lease management, and rental management. To execute a deal, a broker connects a seller and a buyer. The demand for technologies like Big Data analytics, Artificial Intelligence (AI), and the Internet of Things (IoT) in commercial real estate management is driving growth in the brokerage and management of commercial real estate. Urbanization in emerging countries is a significant driver of commercial real estate management and brokerage business.

Market Dynamics

Rise in Government Initiatives for Real Estate Investments Drives the Global Market

Increasing government attempts to construct commercial infrastructure are driving the demand for brokerage management services in the real estate industry. More significant commercial project development is supported by government initiatives like Make in India, the Affordable Housing Funds (AHF), and others. Government funding for the construction of real estate infrastructure is causing the market to grow. For instance, the need for brokerage management systems for selling, renting, and acquiring real estate increased due to the Russian government investing over USD 96 billion over six years to construct hotels, office buildings, and shopping malls. Therefore, this factor stimulates the commercial real estate brokerage and management market.

Expansion of Old and Setting New Planned Cities Creates Tremendous Opportunities 

Governments have been obliged to either plan for a brand-new metropolis or to expand the limits of existing ones to balance economic growth across the country due to the overcrowding of big cities. Examples include Dream City in Gujarat, Vikram City in Madhya Pradesh, New Town in Kolkata, and New Kanpur City, which are new cities that will have commercial, residential, and industrial districts. In a similar vein, the government of South Korea decided to create two brand-new cities to balance the growth of the Gangnam and Gangbuk regions. Such expansion and establishment plans for new cities drive migration, which raises the demand for brokerage management solutions for buying, renting, and leasing property.

Regional Analysis 

North America is the most significant revenue contributor and is expected to grow at a CAGR of 6.6% during the forecast period. The commercial real estate brokerage and management markets are studied in the US, Canada, and Mexico. The United States dominated the market in 2020, but Mexico is expected to proliferate. Due to the high per capita incomes in the U.S. and Canada, more people are opting to buy commercial real estate than rent it. Additionally, because rents are higher in developed and developing locations, many people choose to invest in real estate because they can expect to see more enormous profits in the future. These factors support the brokerage and management of commercial real estate in North America.

Europe is expected to grow at a CAGR of 6.8% during the forecast period. Countries like Germany, France, and the U.K. have been recognized as important markets for commercial real estate brokerage and management due to the rise of their economies. Christie's International Real Estate, Engel and Volkers AG, Savills, and Vinci are the market's leading competitors. Additionally, the demand for real estate is rising due to European countries' increasing populations, historically cheap borrowing rates, excellent employment stability, and foreign tourism.

Key Highlights

• The global commercial real estate brokerage and management market was valued at USD 2,26,902 million in 2021. It is projected to reach USD 4,24,406 million by 2030, growing at a CAGR of 7.2% during the forecast period (2022-2030). 
• Based on solution, the global commercial real estate brokerage and management market is bifurcated into sales, leasing, and others. The sales segment is the highest contributor to the market and is estimated to grow at a CAGR of 6.5% during the forecast period.
• Based on type, the global commercial real estate brokerage and management market is bifurcated into brokerage and management. The brokerage segment is the highest contributor to the market and is estimated to grow at a CAGR of 7.0% during the forecast period.
• Based on application, the global commercial real estate brokerage and management market is bifurcated into offices, industrial, retail, multifamily, and others. The industrial segment is the highest contributor to the market and is estimated to grow at a CAGR of 6.4% during the forecast period.
• North America is the most significant revenue contributor and is expected to grow at a CAGR of 6.6% during the forecast period.

Competitive Players

1. Cbre Group, Inc.
2. Christie’s International Real Estate
3. Cushman and Wakefield Plc
4. Jones Lang Lasalle Ip, Inc.
5. Newmark and Company Real Estate, Inc.
6. olliers International Group Inc
7. Savills Plc
8. Mitsui Fudosan Co. Ltd
9. Voit Real Estate Services LP
10. Kidder Mathews Inc.

Recent Developments

• April 2024 - The Massimo Group presented CRE Broker Magazine, a groundbreaking new tool that provides insights and best practices from the industry to professionals in commercial real estate. Its importance in managing market complexity and promoting broker success was highlighted by founder Rod Santomassimo.
• June 2024 - One of the country's leading commercial real estate brokerages, JLL, decided to establish an office at Santana Row, a San Jose destination area. The opening of the new office would be JLL's first venture into the biggest metropolis in the Bay Area.

Segmentation

1. By Solution
   1. Sales
   2. Leasing
   3. Others 
2. By Type
   1. Brokerage
   2. Management
3. By Applications
   1. Offices
   2. Industrial
   3. Retail
   4. Multifamily
   5. Others