Commercial Real Estate Services Procurement Intelligence
In this commercial real estate services procurement intelligence report, we have estimated the pricing of the key cost components. Property development, common area management (CAM), management and administration cost are some of the key cost components of commercial real estate services. The cost of the services is primarily dominated by property management expenses which may cost between 2 - 6% of total monthly revenue. The expense of advertising is an important factor to consider in property management, and the fee structure can differ greatly depending on the particular property. Service providers also charge lease-up fees and lease renewal fees. Commercial real estate experienced a significant price slowdown due to the increasing interest rates, the impact of COVID-19, and disruptions in the supply chain.
Order your copy of the Commercial Real Estate Services category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
Operational Capabilities - Commercial Real Estate Services
- Industry Served - 20%
- Revenue Generated - 15%
- Employee Strength - 15%
- Geographical Service Provisions - 15%
- Key Clients - 15%
- Certifications - 10%
- Years in Service - 10%
Functional Capabilities - Commercial Real Estate Services
- Property Management - 20%
- Lease Administration - 20%
- Consulting - 20%
- Property Valuation - 20%
- Others - 20%
Rate Benchmarking
When analyzing rate benchmarking of commercial real estate services, the type of property, location, condition of property, size, type, and quality of tenant plays a crucial role. In our study, we have analyzed the rate of different commercial properties in various countries such as the U.S., China, Japan, and the UK. The rates of the properties have been on the rise due to increasing demand for office space. In Q1 2023, the average price of office space in U.S. was around USD 38 per square foot. The price of retail was on an average of USD 18.09 per square foot. In 2021, average property prices for office purposes amounted to USD 1,486 per square meter in China.
Supplier Newsletter
In May 2023, Agriplay Ventures Inc. announced a partnership with Savills to leverage its network of real estate services to expand its reach and boost its growth. Agriplay Ventures Inc. and its territorial licensees benefit from professional services offered through Savills' extensive network of representatives and partnerships. This network covers all provinces or states in Canada and the United States, as well as various locations worldwide.
In May 2023, CBRE Group, a leading commercial real estate services and investment firm, announced a worldwide strategic collaboration between its property management division and Deepki, a provider of real estate sustainability data solutions. This partnership entails the global implementation of Deepki's data-intelligence platform, Deepki Ready, which is specifically designed to assist landlords in achieving sustainability goals.
In December 2022, CBRE Group acquired H2M Sverige AB a property management service company in Sweden. Post completion of the acquisition, H2M will operate as part of the CBRE Global Workplace Solutions (GWS) group and strengthens the presence of CBRE in the country.
In October 2022, BBG, a commercial real estate service firm, has acquired VSI Appraisal Group in Columbus. With this acquisition, BBG will enhance its presence in Columbus while adding affordable housing specialty to its portfolio of services.
List of Key Suppliers
- CBRE
- Cushman Wakefield
- Lee Associates
- Savills
- Marcus Millichap
- Colliers
- Avison Young
- Newmark Knight Frank
- TCN Worldwide
- RE/MAX, LLC
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Commercial Real Estate Services Procurement Intelligence Report Scope
- Commercial Real Estate Services Category Growth Rate : CAGR of 5.1% from 2023 to 2030
- Pricing Growth Outlook : 3% - 4% (Annually)
- Pricing Models : Full Service Outsource Pricing, Price for services offered, Competition based pricing
- Supplier Selection Scope : End-to-end service, cost and pricing, compliance, service reliability, and scalability
- Supplier Selection Criteria : Types of properties, quality, number of services offered, client relationship, track record and reputation, regulatory compliance, and others
- Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
