Commercial Real Estate Services Market Intelligence

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

$500-535 Bn

Market Size Asia Pacific

$131 Bn

Market Size LATAM

$35–45 Bn

Table of contents

  1. Commercial Real Estate Services Executive Summary
  2. Overview of CRE Category
  3. Global Market Understanding for CRE
  4. COVID 19 Category Impact
  1. Market Analysis
  2. Global CRE Market Maturity
  3. Global CRE Drivers and Constraints
  4. Regional Market Outlook
  5. Industry Outlook
  6. Key Technology Trends
  7. Co-working and flexible spaces
  8. Porter’s Five Forces Analysis – Global Perspective


  1. COVID-19 Analysis
  2. Industry Watch
  3. Market Impact


  1. RFP Inputs and trends
  2. RFP Overview and Trends


  1. Supplier Scorecard
  2. Supplier Scorecard Criteria
  3. Specific Service Level Agreements (SLAs) and Key
  4. Performance Indicators (KPIs) for Real Estate Management Services


  1. Cost and Pricing Analysis
  2. Cost Structure Analysis
  3. Saving Opportunities


  1. 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

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Global Market Outlook on Commercial Real Estate Services (CRE)

  • COVID-19 outbreak has impacted the global CRE market and has lead to a significant slowdown in CRE investments in the affected regions

  • The commercial real estate market is expected to grow at a rate of 3 percent according to the commercial real estate industry experts. 

  • The commercial real estate market size of North America is the largest at about $535 billion. The Asia Pacific market size is $131 billion and the market size of LATAM is up to $45 billion.

  • The global commercial real estate market size is more than $800 billion according to commercial real estate market research.

  • The high market maturity regions include France, Singapore, US, Germany, and Australia. The medium market maturity regions include China, UAE, Eastern Europe, and India. 


Global CRE Industry - Drivers and Constraints 


  • 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


  • 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
  • Services providers still lack self-performance capabilities, which is one of the main expectations of the buyers, as it can reduce the margin on subcontractin

Supply Trends and Insights 

Supply market outlook

  • The highly competitive real estate/FM market, together with an 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 for in suppliers before awarding large contracts?

  • Suppliers should have the 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

Market Overview 

Global players have the capabilities to provide end-to-end services.

The major fee components are management fee. The management fee can be a percentage of the monthly gross rent or a flat fee. It pays for the property manager’s time spent in commercial real estate marketing, administering lease agreements, screening applicants and resolving tenant issues. Administration fee: Services, like managing dispute resolution with tenants, sending out statements and providing reports to the property owner, require an additional fee on top of the management fee. Collection fee: encompasses a collection of all rents, fees, revenue and delinquencies. Maintenance fee: Maintenance fees are special costs tailored specifically to the upkeep of buyers’ properties, and others. Generally, the contract period is between three and five years. The pricing is fixed.

Why You Should Buy This Report

  • This real estate market intelligence report gives the global and regional commercial real estate market analysis, global commercial real estate market size, trends and Porter’s five force analysis. 
  • It gives supply trends and insights and provides SWOT analysis of major players like CBRE, JLL, Cushman & Wakefield, etc. 
  • The report gives the commercial real estate market cost structure breakdown, pricing trends, etc.
  • It details the best sourcing, engagement and pricing models and analyzes the commercial real estate market data to list out the SLAs and KPIs.
  • It thoroughly analyzes the saving opportunities and the cost structure. It provides a supplier scorecard too.
  • The report provides procurement best practices including pricing structure, pricing model, office space management, engagement models, and contract lengths.

Commercial Real Estate Services Market Frequently Asked Questions

  1. What are the main KPIs of the commercial real estate market?
  2. As per Beroe’s study, the main KPIs of the commercial real estate market are: Acquisition and Disposals Landlord and Tenants Data Analysis Data Capture
  1. What is the expected growth of the CRE market?
  2. As per Beroe’s analysis, the total global investment volume for the CRE market is expected to grow at an average rate of 6 percent by 2021.
  1. Who are the top global service providers of the CRE market?
  2. The names of top service providers globally are: CBRE Jones Lang Lasalle (JLL) Colliers International Cushman and Wakefield (C&W) Savills Knight Frank
  1. What are the primary cost components influencing the commercial real estate market?
  2. Following the insights from the real estate market intelligence report, the major cost components are: Management Fee Administrative Fee Collection Fee Maintenance Fee Other Unspecified Fee
  1. What are the two pricing models that influence commercial real estate services?
  2. The two main pricing models prevalent in the CRE market are: Fixed-price model Flat-price model
  1. Which countries are the high-market & medium-market maturity regions for the global CRE market?
  2. As per the data report generated by Beroe, the high-market maturity region includes the following countries: U.S. U.K. Australia Germany France Qatar Dubai Singapore And, the medium-market maturity regions include: U.A.E. Eastern Europe China India
  1. What’s the average contract period applicable within the real estate industry?
  2. The average duration of all the contracts within the real estate market is usually between three to five years.
  1. What’s the emerging engagement strategy proposed for the CRE market?
  2. According to the report, the most emerging engagement strategy is the bundling of the CRE market with FM services in a single contract.
  1. How will bundling of the CRE market with FM services impact the market in general?
  2. As per the commercial real estate market data, the bundling of the CRE market with FM will affect the following parameters: Quality Achievement – High Cost-Effectiveness – Medium Execution Risk – Medium Adoption Rate – Rapidly increasing
  1. What factors are classified as negotiating factors in the commercial real estate market?
  2. The report from Beroe indicates the following as the main negotiating factors in the CRE market: Share of savings Fee at risk Scope additions Contract tenure
  1. What parameters should you check before awarding large contracts to the suppliers?
  2. The parameters that suppliers must fulfill are: Experience to manage large volumes of transactions The ability of service providers to provide integrated real estate services Capable of serving single buyers with large-size multiple properties in one geographical location Focused on resource management and expertise in software to manage real estate services
  1. What’s the commercial real estate market size of both North America and the Asia Pacific?
  2. Between North America and the Asia Pacific, the latter is on the higher end with market size of $874.8 Bn, while NA captures a market size of $529.4 Bn.

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