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Real Estate Brokerage and Management Industry Profile Excerpt
| SIC Codes: 4225, 6512, 6513, 6514, 6515 NAICS Codes: 531 Page Length: 10-12 Last Quarterly Update: 11/24/2008 View Sample Industry Profile |
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The US real estate management industry includes 220,000 companies generating about $160 billion in annual revenue. Of these, 60,000 are local real estate brokers, another 50,000 are involved in non-owner property management and appraisals, and the other 110,000 are owner/managers of residential and nonresidential properties, such as apartments, office and retail buildings, shopping malls, theaters, industrial space, assisted living facilities, and retirement communities. Only the largest real estate companies, such as Equity Office Properties, Coldwell Banker, and Simon Property Group, have revenues exceeding $1 billion; most have annual revenues less than $10 million.
The range size of companies in this very fragmented industry is enormous. A large apartment owner such as AIMCO manages over 300,000 apartments, while most companies are small and own or manage a single building. Even the largest property owners hold only a small fraction of the total US market, which includes 34 million apartments; 700,000 office buildings; 1.3 million retail buildings; and 2.5 million other commercial buildings. The average size of retail and office properties has not changed significantly in 20 years: 10,000 square feet for retail buildings and 15,000 square feet for office buildings.
COMPETITIVE LANDSCAPE
The profitability of real estate management companies (which have mainly fixed costs) depends on demand for the properties they're associated with or the volume of transactions they handle, both of which are usually higher during periods of strong economic growth and can ...
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