Commercial Real Estate Market Intelligence

Are you looking for answers on Commercial Real Estate category?

Are you looking for answers on Commercial Real Estate category?

  • What are the key trends in CRE category?
  • Am I paying the right price?
  • Am I working with the right supplier?
  • What are the major challenges and risks in CRE industry?
  • How is CRE industry performing?

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Report Coverage

  • Regional market outlook- North America, LATAM, APAC,MEA
  • Global CRE Market Themes 2018 to 2020
  • Key Technology and Trends in Real Estate
  • Key Regional/Local Suppliers - Service Portfolio

Market Size

Market Size North America

$529.4 Bn

Market Size Asia Pacific

$874.8 Bn

Table of contents

  1. Commercial Real Estate Executive Summary
  2. Overview of CRE Category
  3. Global Market Understanding for CRE
  4. Brexit - Impact on Real Estate & FM Procurement

 

  1. Commercial Real Estate Market Analysis
  2. Global CRE Market Maturity
  3. Global CRE Drivers and Constraints
  4. Regional Market Outlook
  5. Industry Outlook
  6. Global CRE market Themes
  7. Key Technology Trends
  8. Co - working and flexible spaces
  9. Porter's Five Forces Analysis - Global Perspective

 

  1. Commercial Real Estate Supply Analysis
  2. Supply Market Outlook - Supply Trends and Insights
  3. Key Regional Suppliers - Service Portfolio
  4. Key Global Supplier Profile
  5. Supplier SWOT Analysis

 

  1. Cost Structure Analysis
  2. Saving Opportunities

 

  1. Commercial Real Estate Procurement Best Practices
  2. Engagement Models - Comparative Analysis
  3. Contract Length - Comparative Analysis
  4. Pricing Model
  5. Pricing Structure
  6. Office Space Management - Leasing vs. Buying
  7. Specific Service Level Agreements (SLAs) and
  8. Key Performance Indicators (KPIs) for Real Estate Management Services

 

 

  1. Commercial Real Estate Case Studies
  2. Case Studies Involving Top Suppliers

 

 

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Global Market Outlook on Commercial Real Estate (CRE)

  • Increased momentum in the global real estate market has been visible, with major markets characterized by optimism and confidence
  • Strong investment markets and growing confidence in office leasing markets are translation to a steady-growing global economy
  • The global market for CRE was valued at $1,130 billion in 2017 and is expected to grow 9 percent by 2020

commercial-real-estate-market-sizeGlobal CRE Industry - Drivers and Constraints 

Drivers

  • Transfer of operational risk: Outsourcing allows buyers to transfer the operational risk to their service providers. The legal responsibility for regulatory compliance would still be the buyer's, but risk can be transferred to the suppliers through regulatory compliance contract clauses
  • Dealing at a local level with an internal team is always tedious and time-consuming. Engaging on a regional or a global level increases the ability to solve contract complexity, which enhances buyer skills
  • Increasing asset complexities and companies buying properties across the globe triggers the need to outsource the property management services
  • During the requirement for quick-completion requests, suppliers can leverage their contacts to buy or sell the properties immediately

Constraints

  • On an operational level, the buyer feels that initially it is difficult to freeze the scope of services if operations are on a local level and with a wide property portfolio
  • Different business unit heads may feel that they have greater bargaining power over a local level supplier, which might lead to resistance in outsourcing the services to a large regional or global supplier
  • Services providers still lack self-performance capabilities, which is one of the main expectations of the buyers, as it can reduce the margin on sub-contracting

Supply Trends and Insights 

Supply market outlook

  • The highly competitive real estate/FM market, together with increased focus on security and sustainability, has been pushing service providers towards innovation
  • The introduction of IFM/TFM will result in strong growth, driven by the increasing role of technology, along with the demand for services, such as energy management and real estate management. This is driving the market towards consolidation
  • The market is gradually shifting from single service to bundled services and further towards IFM, so major service providers are increasing their competency through M&As
    –For example: CBRE acquired Johnson Controls, Inc.'s (JCI) Global Workplace Solutions (GWS) to achieve greater competency in FM services
    –Leading global property vendors DTZ and C&W merged in 2015

Engagement Model

  • Most adopted model globally: Fixed price and flat fee
  • Most large companies, typically, look at a regional/global engagement as it addresses any one of the following scenarios:
    –Large spread of properties internationally
    –Properties in markets that are opaque

What to look in suppliers before awarding large contracts?

  • Suppliers should have experience to manage the large volume of transactions
    – For example: CBRE has the highest volume of transactions managed, followed by C&W and Colliers International on a global level
  • Ability of service providers to provide integrated real estate services
    – Global suppliers have a strong presence with a wide range of service capabilities
  • Service providers' capability to serve single buyers with large -size multiple properties in one geographic region
    – High value accounts have been managed by global service providers
  • Software used to manage real estate services
    – TRAMPS, Yardi Propware, Horizon, MRI & Yardi Voyager
  • Supplier focus on resource management
    – Focus is largely on high priority contracts and leveraging economies of scale

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