Property Management in The US Industry Report

INDUSTRY REPORT 53131
Property Management in the US
Commercial growth: The US homeownership rate is projected to continue increasing,

reducing the need for industry services
Matt Pantalon | July 2022
IBISWorld.com 1-800-330-3772 [email protected]

Property Management in the US July 2022
Contents
Recent Developments......................................................... 3 COMPETITIVE LANDSCAPE.......................... 25
ABOUT THIS INDUSTRY.................................. 5 Market Share Concentration............................................. 25
Key Success Factors........................................................25
Industry Definition................................................................5 Cost Structure Benchmarks............................................. 26
Major Players...................................................................... 5 Basis of Competition......................................................... 29
Main Activities..................................................................... 5 Barriers to Entry............................................................... 29
Supply Chain....................................................................... 6 Industry Globalization........................................................ 30
INDUSTRY AT A GLANCE................................ 7 MAJOR COMPANIES...................................... 31

Executive Summary............................................................ 9 Market Share Overview..................................................... 31
Related Companies........................................................... 31
INDUSTRY PERFORMANCE..........................10 Prologis, Inc.......................................................................32
Boston Properties, Inc....................................................... 34
Key External Drivers.........................................................10 Cushman & Wakefield Plc................................................. 36
Current Performance........................................................ 11 Newmark Group, Inc......................................................... 38
Cbre Group, Inc................................................................. 40
INDUSTRY OUTLOOK.................................... 14
OPERATING CONDITIONS............................ 42
Outlook.............................................................................. 14
Industry Life Cycle............................................................. 16 Capital Intensity................................................................. 42
Technology & Systems......................................................43
PRODUCTS & MARKETS............................... 17 Revenue Volatility..............................................................44
Regulation & Policy........................................................... 44
Supply Chain..................................................................... 17 Industry Assistance........................................................... 45
Products & Services.......................................................... 17
Demand Determinants...................................................... 18 KEY STATISTICS............................................ 46
Major Markets....................................................................19
Industry Data..................................................................... 46
GEOGRAPHIC BREAKDOWN........................ 21 Annual Change..................................................................46
Key Ratios......................................................................... 46
Key Insights....................................................................... 21 Industry Financial Statement............................................. 47
Business Locations........................................................... 24
ADDITIONAL RESOURCES............................49
Additional Resources........................................................ 49
Industry Jargon..................................................................49
Glossary............................................................................ 49
CALL PREPARATION QUESTIONS............... 51

Role Specific Questions.................................................... 51
External Impacts Questions.............................................. 52
Internal Issues Questions.................................................. 52
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Recent Virtual tours have become more popular

Developments
The outbreak of the coronavirus pandemic has made virtual tours a necessity. Similar to virtual tours, more renters
have realized the simplicity and convenience of online payments, encouraging property managers to invest in online
payment platforms.
This section last udpated October 07, 2022
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About This Industry

Industry Definition Companies in this industry manage residential and nonresidential real estate for property owners. Property
management responsibilities relate to the overall operation of a property, including maintenance, rent collection,
trash removal, security and some renovation activities. Industry players may also help manage a property's
accounting, but operations related to the transactions of properties or real estate investments are not included in this
industry.
Major Players Prologis, Inc.
Boston Properties, Inc.
Cushman & Wakefield Plc
Newmark Group, Inc.
Cbre Group, Inc.
FPI Management Inc.
NAI Hiffman
Adams & Co. Real Estate
Main Activities The primary activities of this industry are:
Collecting rent
Managing facilities maintenance services
Managing security
Managing trash and recycling collection
Property accounting
Legally representing property owners
Finding and screening tenancy applicants
Coordinating repair contractors
The major products and services in this industry are:
Residential property management
Nonresidential property management
Real estate agent and brokerage services
Other
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Supply Chain
SIMILAR INDUSTRIES
Loan Brokers in the US Apartment Rental in the US Commercial Leasing in the US Real Estate Sales & Brokerage in
the US
Conveyancing Services in the US
RELATED INTERNATIONAL INDUSTRIES
Global Commercial Real Estate Estate Agents in the UK Residential Property Operators in Office Property Operators in
Australia Australia
Retail Property Operators in Industrial and Other Property Commercial Property Operators in Residential Real Estate in China
Australia Operators in Australia New Zealand
Commercial Real Estate in China Property Management in Canada Estate Agents in Ireland
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Industry at a Glance
Key Statistics Key External Drivers % = 2017–22 Annual Growth
$109.4bn 4.8% 4.7pp

Revenue Corporate profit Office rental vacancy
Annual Growth Annual Growth Annual Growth

1.8pp -1.0pp
Homeownership rate Rental vacancy rates
2017–2022 2022–2027 2017–2027
2.1% 1.2%
Industry Structure
POSITIVE IMPACT
$11.0bn
Profit Revenue Volatility Capital Intensity
Low Low
Annual Growth Annual Growth
Concentration Regulation & Policy
2017–2022 2017–2022 Low Light / Steady
5.0% Technology Change Industry Globalization
Low Low / Increasing
MIXED IMPACT
10.1% Life Cycle Competition

Profit Margin Mature Medium / Steady
Annual Growth Annual Growth NEGATIVE IMPACT

2017–2022 2017–2022 Industry Assistance Barriers to Entry
Low / Steady Low / Steady
1.3pp
Key Trends
308k
Businesses  The industry has experienced strong demand from
consumers seeking to rent
2017–2022 2022–2027 2017–2027  Demand for office space has steadily risen over the past five
years
4.1% 2.7%
 Property managers require few purchases and pay out most
of their revenue in wage costs
 Demand for commercial rental properties will likely increase,

912k contributing to revenue growth
Employment
 Industry participants are projected to benefit from a rise in
Annual Growth Annual Growth Annual Growth outsourcing activity
2017–2022 2022–2027 2017–2027  Increased competition from real estate brokerages will
2.6% 1.7% pressure profit
 The residential construction and housing markets have

strengthened, primarily as a result of a relatively low existing
housing stock
$47.8bn
Wages
2017–2022 2022–2027 2017–2027
3.0% 1.6%
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Products & Services Segmentation
Major Players SWOT
STRENGTHS
Low Volatility
Low Imports
Low Capital Requirements
WEAKNESSES
Low & Steady Barriers to Entry

Low & Steady Level of Assistance
Low Profit vs. Sector Average
High Customer Class Concentration
High Product/Service Concentration
Low Revenue per Employee
OPPORTUNITIES
High Revenue Growth (2017-2022)

High Revenue Growth (2022-2027)
Corporate profit
THREATS
Low Revenue Growth (2005-2022)

Low Outlier Growth
Low Performance Drivers
Rental vacancy rates
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Executive Summary Commercial growth: The US homeownership rate is projected to continue

increasing, reducing the need for industry services
Operators in the Property Management industry manage residential and nonresidential real estate for property
owners. The industry is resistant to economic downturns, primarily as a result of countercyclical demand trends.
When the economy struggles, the homeownership rate tends to decline as consumers and lenders remain cautious,
creating demand for rental markets and property management. During periods of economic prosperity, the
residential market segment tends to weaken as homeownership becomes more attainable and the need for
management services slows. During economic upswings, however, the expansion of commercial properties
becomes more important to the industry. The industry exhibited similar trends during the COVID-19 (coronavirus), as
rental vacancy rates declined during the economic downturn.
Over the five years to 2022, the residential construction and housing markets have strengthened, primarily as a
result of a relatively low existing housing stock, low interest rates and high housing prices. Despite the economic
downturn caused by the pandemic and a resilient housing market, rental vacancy rates declined in 2020 and 2021,
primarily as a result of regulations against evictions and federal stimulus due to the pandemic. Industry revenue is
expected to decrease in 2022, however, as vacancies are expected to increase while per-capita disposable income
declines. Anticipated declines in residential construction are also likely to hamper the industry. Altogether, industry
revenue is expected to increase an annualized 2.1% to $109.4 billion over the five years to 2022, despite a
decrease of 2.7% in 2022. Meanwhile, industry profit, measured as earnings before interest and taxes, is expected
to grow during the five-year period, accounting for 10.1% of industry revenue in 2022, up from 8.8% in 2017.
Over the five years to 2027, the value of residential construction is expected to fall. Unfortunately for industry
operators, the US homeownership rate is projected to continue increasing over the next five years as well, reducing
the need for residential property management services. Regardless, office vacancy rates are expected to decline
slightly over the next five years. As a result of these trends, industry revenue is expected to increase at an
annualized rate of 1.1% to $115.8 billion over the five years to 2027.
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Industry Performance
Key External Corporate profit

Drivers
As corporate profit falls, businesses tighten spending habits, discouraging businesses from expanding or causing
them to close branches. This trend, in turn, reduces demand for the leasing of commercial space, a key market for
the Property Management industry. Corporate profit is expected to increase in 2022, representing a potential
opportunity for the industry.
Rental vacancy rates
High rental vacancy rates are an indicator of low demand, while the opposite is an indicator of high demand. Since
home prices and consumer income levels influence residential rental vacancy rates, consumers tend to rent rather
than buy homes when consumers have less disposable income or when the price of homeownership is high. Rental
vacancy rates are expected to increase in 2022, posing a potential threat to the industry.
Homeownership rate
The homeownership rate is the ratio of owner-occupied dwellings to total occupied dwellings in the United States. As
the homeownership rate rises, demand for industry services generally declines, since the majority of industry
revenue is associated with residential rental property management services. The homeownership rate is expected to
increase slightly in 2022.
Office rental vacancy
A high office rental vacancy rate indicates a large amount of unused commercial space and low industry demand.
The rate is heavily influenced by general economic conditions, which can facilitate or hamper the growth of new
businesses and the expansion of existing ones. The industry derives substantial revenue from managing corporate
campuses and business spaces. The office rental vacancy rate is expected to increase in 2022.
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Current The Property Management industry offers third-party or outsourced

Performance services to handle upkeep, maintenance and tenant relations for property
owners or landlords.
Demand for these services relies on how multifamily residential space, such as apartment buildings; commercial
space, such as office buildings; and industrial space are occupied by tenants, which is influenced by the attainability
and attractiveness of homeownership and general economic activity. The industry is typically resistant to economic
slowdowns since it offers businesses a way to cut costs by reducing internal employment to focus more on core
company operations.
HOMEOWNERSHIP IS UP, BUT RENTAL VACANCY RATES REMAIN LOW
Over the five years to 2022, the US economy has strengthened, aside from
a steep decline in 2020 and 2021 due to the COVID-19 (coronavirus)
pandemic.
As per capita disposable income has increased at an annualized rate of 1.7% over the five years to 2022,
consumers have felt relatively more confident in their financial situations to spend freely, with consumer spending
increasing during the period as a result. Additionally, interest rates remaining lower than their historical norm has
enabled consumers and businesses to secure accommodative borrowing agreements. Typically, such trends result
in an increase in the homeownership rate, which hinders industry revenue expansion. However, rental vacancy rates
have decreased at an annualized rate of 2.7% over the five years to 2022, signaling a stable level of demand for
industry services. Although, much of this increase has been due to pandemic related measures, such as the eviction
moratorium, which has now ended. Overall, industry revenue is expected to rise at an annualized rate of 2.1% to
$109.4 billion over the five years to 2022, despite a decrease of 2.7% in 2022 alone, largely due to improving
economic conditions and the correction in residential construction.
RESIDENTIAL RENTAL DEMAND
The industry has experienced growing demand from consumers seeking

to rent.
Demand was especially strong late in the period, but will likely decline in 2022, largely due to general market
correction following to the coronavirus outbreak, elections and other economic factors that introduced uncertainty
into the market. While interest rates were lower than their historical norm, they have begun to creep back up, as
shown by the increase of 2.0% in the 30-year conventional mortgage rate in 2022 alone. While there had been an
increase in homeownership in recent years, this increase in the mortgage rate is likely to begin to push consumers
back to rentals. Growth in housing starts and overall residential construction has slowed recently, further indicating
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that demand for new homes has declined. Meanwhile, rental vacancy rates have decreased at an annualized rate of
2.7% over the five years to 2022. While an increase in housing starts and homeownership rates are negatively
correlated with industry revenue, a decline in rental vacancy rates signals stabilization in demand for industry
services, regardless of demand for residential construction activity.
NONRESIDENTIAL MARKETS
Demand for office space has steadily risen for most of the current period,
more so than the supply of office space.
This healthy trend changed abruptly in 2020 with the emergency of the coronavirus pandemic and the contraction of
the economy. In 2020, many property owners and occupiers put transactions on hold and withdrawn existing
mandates, reducing leasing volumes. A sharp decline in corporate profit during 2020 led some businesses to rent,
instead of purchasing their own office space, benefiting industry operators. Even so, office rental vacancy increased
in 2020 as remote work became the new normal for most companies that were able to adapt during the pandemic.
Remote work has become a permanent staple now for many companies, indicating that there may still be a further
decline in demand for office space. One of the very few types of assets that exhibited a considerable level of
resiliency during the pandemic is industrial leasing. Partly driven by higher demand for e-commerce services,
demand for industrial leasing increased during the pandemic, somewhat offsetting declines in demand for other
types of nonresidential services. Nonresidential markets continue to rebound following the effects of the coronavirus
pandemic, as indicated by the estimated 2.5% increase in private nonresidential construction in 2022 alone.
INDUSTRY EXPANSION
Property managers require few purchases and pay out most of their
revenue in wage costs, which account for 43.7% of industry revenue in
2022.
Industry employees add substantial value, providing services based on their knowledge of local real estate trends,
tenancy and building code laws. Over the past five years, industry employment has grown at an annualized rate of
2.6%, reaching 911,597 employees in 2022. The overall economic conditions have caused industry profit, measured
as earnings before interest and taxes, to grow during the five-year period, accounting for 10.1% of industry revenue
in 2022, up from 8.8% in 2017. Still, more operators have entered the industry. Driven by growing demand for
industry services and still rising rent prices, the number of operators has increased at an annualized rate of 4.1% to
307,621 enterprises in 2022. However, most of the new companies in the industry are small, nonemploying
agencies that generate a low level of revenue.
While the Property Management industry is highly fragmented and none of the operators represent more than 5.0%
of industry revenue, large industry operators have continued to consolidate. As a result, market share concentration
has increased, but the largest industry operators represent only a small portion of industry revenue. For example, in
March 2020, a large industry operator Cushman & Wakefield PLC completed the acquisition of a multifamily property
manager Pinnacle Property Management Services LLC, enabling the former to establish a foothold across 20 key
multifamily markets in the United States. In February 2021, another major operator CBRE Group Inc (CBRE)
announced the acquisition of a 35.0% interest in Industrious, increasing CBRE's participation in the flexible
workplace sector and enabling it to meet rising demand for agile space solutions.
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Historical Performance Data

Rental
Domestic vacancy
Revenue IVA Establishments Enterprises Employment Exports Imports Wages Demand rates
Year ($m) ($m) (Units) (Units) (Units) ($m) ($m) ($m) ($m) (%)
2013 74,446 44,389 222,948 210,358 706,900 N/A N/A 34,711 N/A 8.30
2014 80,548 46,276 235,190 220,640 736,775 N/A N/A 36,611 N/A 7.60
2015 85,958 49,591 245,300 229,975 748,836 N/A N/A 38,072 N/A 7.10
2016 93,669 51,139 254,363 237,581 770,232 N/A N/A 39,243 N/A 6.90
2017 98,422 51,908 268,551 252,170 801,412 N/A N/A 41,278 N/A 7.20
2018 101,182 54,907 283,243 266,684 830,185 N/A N/A 42,765 N/A 6.90
2019 104,923 57,214 293,972 276,656 849,416 N/A N/A 44,457 N/A 6.80
2020 108,103 59,440 307,090 289,014 883,125 N/A N/A 46,488 N/A 6.30
2021 112,442 61,816 320,650 301,842 917,907 N/A N/A 48,326 N/A 6.10
2022 109,351 60,709 325,838 307,621 911,597 N/A N/A 47,795 N/A 6.30
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Industry Outlook
Outlook Over the five years to 2027, the Property Management industry is
expected to continue growing as the economy recovers following the
COVID-19 (coronavirus) pandemic.
Homeownership is expected to continue to grow over the next five years, resulting in somewhat constrained demand
for rental services and downward pressure on industry revenue. Over the five years to 2027, rental vacancy rates
are expected to rise at an annualized rate of 1.3%, further indicating a decrease in demand. However, the
anticipated expansion of corporate profit coupled with declines in office rental vacancy is expected to lead to
continued commercial demand for industry services. Companies are also expected to expand services offered to
increase demand from consumers and businesses, which will likely help guarantee a continuous stream of new
revenue. However, remote work is expected to persist following the coronavirus pandemic, decelerating office rental
vacancy decline and, thus, revenue growth. While nonresidential construction is still expected to grow during the
outlook period, many businesses now are more hesitant to sign long-term lease agreements. Overall, industry
revenue is expected to rise an annualized 1.1% to $115.8 billion over the five years to 2027.
RESIDENTIAL RENTAL DEMAND DECLINES
The value of residential construction is expected to fall at an annualized

rate of 0.7% over the five years to 2027.
Following the spike in residential construction during the pandemic, there has been and will likely continue to be a
market correction. Demand for residential construction is no longer being supported by the slowdowns across other
construction industries and the shift in consumer preferences caused by the steep declines in industries such as
travel. This will place downward pressure on the residential segment of the industry. Another factor that determines
the level of demand for residential rental is the interest rate. When the interest rate increases, it becomes more
expensive to borrow funds to buy a house, and vice versa. Since the Federal Reserve signaled in June 2021 that it
expects to hike the federal funds rate twice by the end of 2023, this would likely help support growing demand for
rental properties. However, the exact federal funds rate will depend on further economic developments. In addition,
United Nations forecasts the number of mega-cities, which are cities that have 10.0 million inhabitants or more, to
rise by 2030, resulting in more individuals demanding rental units near metropolitan statistical areas. Altogether,
demand for residential rentals is expected to stagnate over the five years to 2027.
TRANSITION TO NONRESIDENTIAL MARKETS
Nonresidential property managers are forecast to experience relatively

stronger demand compared with the residential market.
An increasing number of US businesses, along with the expansion of existing operators, is expected to create new
demand for property managers. The number of US businesses is expected to increase an annualized 1.0% over the
five years to 2027, while corporate profit is expected to expand at an annualized rate of 3.0% during the same
period. These factors will likely drive revenue for the nonresidential market, which will play an important role during
the outlook period. Consequently, office rental vacancies are expected to decline.
However, increases in nonresidential construction are expected to hinder industry operators' pricing power with
clients. As the amount of potential nonresidential buildings increases, industry operators will likely be forced to be
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more competitive with their pricing. Although, the increased number of properties will increase opportunities for a
higher number of operators, potentially still aiding industry revenue growth. Accordingly, with the value of private
nonresidential construction increasing an annualized 1.3% over the five years to 2027, industry operators will likely
be wary of any changes that may affect prices.
COMPETITIVE BALANCE
Industry participants are projected to benefit from a rise in outsourcing

activity as real estate owners and lessors have increasingly turned to
industry operators to reduce costs and improve profitability.
Costs will likely be reduced as real estate investment trusts and property developers reduce their internal staff to
focus on core business operations. Moreover, outsourcing property management often helps property owners
access a larger pool of potential tenants, reducing the vacancy rate. Property managers will also likely expand their
service offerings as participants move beyond conventional owner-associated functions and into more tenant-related
services, such as facility management.
INDUSTRY LANDSCAPE
The expansion of services and some growth in demand are forecast to

support increased participation.
Small nonemploying companies are expected to continue entering the industry. Thus, the number of enterprises is
projected to increase an annualized 2.7% to 351,969 companies over the five years to 2027. Meanwhile, industry
employment is expected to grow at a slower rate, increasing an annualized 1.7% to 991,196 workers during the
same period.
Despite the trend of service expansion, increased competition from real estate brokerages, agencies and investment
trusts is anticipated to pressure profit. Similar to property managers, these entities are anticipated to expand
services to increase revenue and diversify operations. In addition, barriers to entry for these operators are low since
many brokerages and agencies already provide complementary facilities services to clients, while real estate
investment trusts often have their own in-house property management capabilities. Thus, IBISWorld expects that
these entities will likely be able to competitively price their services, pressuring industry profit. Consequently,
industry profit, measured as earnings before interest and taxes, is expected to account for a 9.9% share of industry
revenue in 2027, down from 10.1% in 2022.
Performance Outlook Data

Domestic Rental
Revenue IVA Establishments Enterprises Employment Exports Imports Wages Demand vacancy
Year ($m) ($m) (Units) (Units) (Units) ($m) ($m) ($m) ($m) rates (%)
2022 109,351 60,709 325,838 307,621 911,597 N/A N/A 47,795 N/A 6.30
2023 109,901 61,322 334,601 316,374 924,469 N/A N/A 48,383 N/A 6.40
2024 111,247 62,257 344,277 325,933 941,519 N/A N/A 49,215 N/A 6.50
2025 112,551 63,099 353,368 334,898 957,522 N/A N/A 50,000 N/A 6.60
2026 113,986 64,049 361,986 343,358 973,480 N/A N/A 50,794 N/A 6.60
2027 115,765 65,130 370,811 351,969 991,196 N/A N/A 51,692 N/A 6.70
2028 118,026 66,415 379,789 360,644 1,010,922 N/A N/A 52,717 N/A 6.70
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Industry Life Cycle The life cycle stage of this industry is Mature
LIFE CYCLE REASONS
IVA is growing at a slightly faster rate than US GDP

Most products and services have remained essentially the same
The industry's markets are established, but fluctuate with economic cycles
Activity in the Property Management industry typically fluctuates on a cyclical basis during the medium-term, with
annual movements largely dependent on the pace of general economic growth, employment growth, property
values, private investment and rental yields. Industry value added (IVA), which measures an industry's contribution
to the overall economy, is expected to rise at an annualized rate of 2.3% over the 10 years to 2027. Meanwhile, US
GDP is forecast to rise at an annualized rate of 1.8% during the same period. IVA growth at a slightly faster rate
than the overall economy suggests that, in this case, the industry is in its mature phase, as growth in this industry is
cyclical and unlikely to deviate too far from general economic conditions.
Products and services have essentially remained the same for many years. However, outsourcing corporate real
estate activities have provided a growing niche market. In recent years, the outsourcing of professional real estate
services on a global level has increased substantially as corporations have focused corporate resources, including
capital, on their core competencies. In addition, public and other noncorporate users of space, such as government
agencies and health and educational institutions, have begun outsourcing real estate activities as a means of
reducing costs. As a result, there are growth opportunities for companies that can provide integrated real estate
services across many geographic markets.
The industry has benefited from the long-term trend toward property owners outsourcing management to third
parties to cut costs and focus on core business. Property management of corporate facilities and multifamily
residential buildings, such as apartment complexes, is a well-established service. However, industry performance
does fluctuate in line with the health of real estate and overall economic activity in the United States, industry
markets may grow or shrink based on vacancy rates in apartments and business spaces.
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Products & Markets

Supply Chain Key Buying Industries Key Selling Industries
1st Tier 1st Tier
Apartment Rental in the US Heating & Air-Conditioning Contractors in the US
Land Leasing in the US Plumbers in the US
Storage & Warehouse Leasing in the US Electricians in the US
Commercial Leasing in the US Janitorial Services in the US
2nd Tier Landscaping Services in the US
Consumers in the US 2nd Tier
Manufacturing in the US Heating & Air Conditioning Equipment Manufacturing in

the US
Finance and Insurance in the US
Power Tools & Other General Purpose Machinery
Retail Trade in the US
Manufacturing in the US
Accommodation and Food Services in the US
Hardware Stores in the US
Products & Services
The Property Management industry includes companies that primarily

handle the maintenance of commercial, industrial and residential real
estate.
Property managers are responsible for nearly every aspect of real estate operation, including rent collection,
accounting, staffing and building maintenance. Additionally, property managers act as the liaison between landlords
and tenants. As a result, property managers often negotiate tenant leases, collect security deposits and process
maintenance requests from tenants.
PROPERTY MANAGEMENT SERVICES
According to the latest US Census data and IBISWorld estimates, 74.5% of

industry revenue is directly related to property management services, with
the remainder of activity associated with brokerage, sales, construction
and property ownership.
Within the property management sector, the majority of industry revenue is generated from residential property,
which generates 51.1% of industry revenue in 2022. Industry participants also manage nonresidential buildings and
commercial space, including office buildings, industrial parks and storage facilities. Nonresidential property
management is estimated to account for 23.4% of industry revenue in 2022.
Over the five years to 2022, property management services have remained a similar proportion of industry revenue,
with residential property management increasing relative to nonresidential. Revenue earned from property
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management services increased in line with the overall industry. Growth in demand for residential services is
expected to outpace demand for nonresidential services as a result of increasing per capita disposable income. In
recent years, rental vacancy rates declined amid the COVID-19 (coronavirus) pandemic, benefiting this segment.
Despite an expected increase in rental vacancy rates in moving forward, this segment is still expected to generate
the largest share of revenue for the industry.
OTHER REAL ESTATE SERVICES
In addition to property management, industry participants also provide a

variety of other real estate-related services, including property appraisal,
brokerage, construction and sales.
The real estate agent and brokerage segment is estimated to account for 6.2% of industry revenue in 2022. Industry
participants occasionally provide brokerage services to facilitate the sales of managed properties, which is important
for operators that position themselves as full-service real estate management companies. Similarly, some industry
participants also provide construction management services for managed properties, with the majority of activities
generally associated with the management of retrofits and renovations of existing buildings and land.
In addition to services directed toward property owners, industry participants also provide facilities management,
which includes a variety of specialty services. Facilities management is a fast growth segment generally associated
with nonresidential buildings and tenants, such as government and major company tenants. Facilities management
includes the management of hard services, such as air conditioning, electrical systems, fire safety, lifts, boilers,
mechanical repairs and maintenance; control of contracts for soft services, such as cleaning, security, pest control,
catering and grounds maintenance; and property agent services, such as management of leases, property
inspections, rent reviews, releasing of space and tenant relocations.
Demand Demand for the Property Management industry is mainly driven by the
Determinants underlying health of the US real estate market, which fluctuates with
economic cycles.
Within the residential marketplace, changes in economic conditions can dramatically affect demand for apartments
and other rental units. Generally, demand for apartments declines as the economy strengthens, as consumers are
able to purchase their own homes instead of renting. Conversely. the COVID-19 (coronavirus) pandemic led to
industry growth, as rental vacancies decreased while the economy suffered. This was due in part to the emergency
legislation that was passed to help people sustain the effects of the pandemic, which included an eviction
moratorium and stimulus payments. However, the rise in homeownership is also influenced by changes in interest
rates and the availability of credit, which was particularly evident during the real estate boom in the first half of the
2000s.
Within the commercial segment, economic conditions can influence demand for office, industrial or storage space as
businesses generally determine their need for space by forecasting their future growth. Economic activity also
influences the creation of new business ventures, with the number of companies increasing during periods of strong
economic growth. In contrast, smaller or weaker companies often struggle to stay afloat during economic downturns,
hurting demand for nonresidential space.
General economic conditions also influence the development of new buildings and properties, which is an important
component of industry growth. Specifically, as more properties enter the market, the potential demand for industry
services rises as the pool of facilities needing management grows. This metric is largely influenced by vacancy
rates, with lower rates signaling a greater need for new developments and vice versa. Generally, both residential
and nonresidential developments increase during economic booms. At the same time, property development is
influenced by the availability of credit, interest rates and property appreciation. During economic downfalls, industry
operators are expected to generate less revenue. This comes primarily as a result of declining consumer
confidence, which affects the revenues generated by tenants and owners of properties that industry operators
manage.
Demand for industry services is also influenced by outsourcing activity since participants rely on real estate owners
and investors to outsource property management functions. Over the five years to 2022, industry participants have
benefited from the rise in outsourcing property management. During the five-year period, corporations, government
agencies and other real estate owners have increasingly outsourced operations in an attempt to reduce operational
costs. This trend has also supported the increase in facilities management services, as tenants and other large
entities turn to market professionals to manage their real estate costs. At the same time, the outsourcing of property
management functions is expected to continue to come under pressure from the growth and influence of real estate
investment trusts, as many of these large operators manage their own assets.
18 IBISWorld.com
Major Markets
The Property Management industry provides services to two distinct

markets, which include residential and nonresidential properties.
Both sectors differ dramatically in regard to tenants, leasing terms and duration. As a result, property management
services can differ greatly between the two segments.
RESIDENTIAL PROPERTIES
The residential segment primarily services the consumer market,

including individuals, couples, families and other housemates.
Occasionally, residential properties are leased to businesses or other entities, but this does not occur often as the
majority of these leases are associated with the relocation of employees and new hires. As a result of this structure,
property managers typically interact with residential tenants and owners. Leases are traditionally standardized, so
negotiations are often limited. Residential clients are expected to generate 56.0% of industry revenue in 2022.
Residential leases are typically shorter in duration than commercial leases. Additionally, many properties contain
more tenants per square foot than do nonresidential properties, as consumers require less space than businesses
and other organizations. As a result of these factors, residential property managers must be able to handle a high
volume of tenant turnover, rental payments, service requests and tenant issues. These properties are also occupied
on a 24-hour basis, so this segment generally employs more individuals operating on a fixed schedule than
commercial properties.
Over the five years to 2022, this segment is expected to increase as a share of industry revenue. As a result of a
decrease in rental vacancy rates during the current period, industry operators have benefited from a relatively higher
capacity of buildings to manage. Additionally, per capita disposable income has risen at an annualized rate of 1.7%
over the five years to 2022. This has enabled tenants to pay relatively higher rental costs, benefiting industry
operators. Also, residential construction experienced a boom during the COVID-19 (coronavirus) pandemic, as
consumer preferences shifted toward spending on their living situation. Residential property managers were able to
capitalize on this and expand significantly. Over the five years to 2027, this segment may decline as rental vacancy
rates and homeownership are both expected to increase, while residential construction experiences a downward
correction.
NONRESIDENTIAL PROPERTIES
The nonresidential market is composed of office, retail, industrial

facilities, warehouse facilities and other nonresidential building types.
Nonresidential tenants include a wide variety of industries and businesses. The office segment is mainly composed
of financial service companies and professionals, including accountants, lawyers, insurance companies and
computer technology companies. In contrast, the industrial clients include manufacturers. The commercial segment
includes malls and shopping plazas, which contain movie theaters, clothing stores, restaurants and other consumer-
oriented businesses. Together, these types of properties represent the majority of nonresidential properties in the
industry and account for 44.0% of industry revenue.
Compared with residential properties, nonresidential properties have much more sophisticated leases, so property
managers are often required to have skilled personnel to negotiate leases and contend with tenant issues. Leasable
19 IBISWorld.com
space also varies by the tenant. Each entity is normally responsible for the build-out and maintenance of the leased
space. Over the five years to 2022, this segment has declined as a share of industry revenue, partly due to the
outbreak of the coronavirus pandemic, which has reduced demand for offices, as many companies have shifted to
working from home long-term. Additionally, the value of private nonresidential construction has declined at an
annualized rate of 2.5% over the five years to 2022. As the value of private nonresidential construction declines, so
too does the available capacity of nonresidential building space for industry operators to manage. However, this
market segment is expected to grow over the five years to 2027 due to anticipated increases in the value of private
nonresidential construction and corporate profit.
Exports in this industry are Low and Steady
Imports in this industry are Low and Steady
The Property Management industry services real estate properties domiciled in the United States. Therefore,
international trade is not applicable. For more information on the overseas presence of companies, refer to the
Industry Globalization section.
20 IBISWorld.com
Geographic Breakdown
Key Insights
California California Arizona Alaska Arizona California
52,379 Est. $15.4bn 21.7% -3.2% $64,007.6 129,327
Most Establishments Highest Revenue Fastest Growth Slowest Growth Highest Average Most Employees
Wage
State Data for Property Management in the US (2022)
Establishments Revenue Employment Wages

State Establishments Growth Rate Revenue Growth Rate Employment Growth Rate Wages Growth Rate
(2017-2022) (2017-2022) (2017-2022) (2017-2022)
Alabama 2,484 4.8% $591.1m -2.7% 6,492 -2.5% $254.4m -2.2%
21 IBISWorld.com

(2017-2022) (2017-2022) (2017-2022) (2017-2022)
Alaska 396 -0.1% $67.0m -3.2% 574 -3.1% $28.6m -2.9%
Arizona 5,756 2.4% $4.8bn 21.7% 32,549 11.9% $2.1bn 22.4%
Arkansas 1,650 3.9% $280.2m 4.2% 3,481 3.3% $120.0m 4.7%
California 52,379 4.4% $15.4bn 3.4% 129,327 2.5% $6.6bn 4.0%
Colorado 9,073 4.4% $1.9bn 1.4% 18,160 0.0% $816.4m 1.9%
Connecticut 3,264 2.6% $972.5m 1.5% 9,320 1.2% $418.1m 2.0%
Delaware 871 2.4% $228.5m -1.3% 2,134 -1.3% $98.6m -0.8%
Florida 27,607 4.3% $7.2bn 3.8% 79,918 3.6% $3.1bn 4.4%
Georgia 8,255 4.6% $3.0bn 2.3% 24,175 0.0% $1.3bn 2.8%
Hawaii 1,586 3.6% $512.3m 2.4% 4,097 -0.3% $220.2m 2.9%
Idaho 1,725 4.2% $319.4m 10.1% 3,841 7.0% $137.8m 10.7%
Illinois 10,102 2.7% $4.0bn 2.7% 30,495 1.1% $1.7bn 3.2%
Indiana 3,786 0.8% $1.5bn 4.7% 13,743 3.4% $657.9m 5.3%
Iowa 1,776 3.7% $321.7m 1.2% 3,486 -0.2% $138.0m 1.7%
Kansas 2,548 1.2% $485.5m 3.0% 5,837 2.4% $207.7m 3.4%
Kentucky 2,136 3.2% $406.7m 1.5% 4,515 -0.2% $174.9m 2.1%
Louisiana 2,631 0.7% $481.3m -2.0% 5,141 -2.5% $206.9m -1.5%
Maine 1,505 5.4% $338.7m 9.0% 4,206 6.7% $145.6m 9.5%
Maryland 5,864 1.6% $3.1bn 3.6% 22,494 2.3% $1.3bn 4.1%
Massachusetts 7,757 4.1% $4.3bn 3.4% 28,718 3.2% $1.8bn 4.0%
Michigan 5,303 1.4% $2.5bn 2.0% 24,282 0.1% $1.1bn 2.6%
Minnesota 4,730 2.2% $1.6bn 0.7% 16,565 0.2% $674.4m 1.1%
Mississippi 1,124 2.8% $159.0m -2.4% 2,258 -1.3% $68.5m -1.9%
Missouri 4,194 2.7% $1.4bn 0.1% 12,731 -1.5% $598.7m 0.5%
Montana 1,144 2.5% $126.1m 4.8% 1,735 1.9% $54.1m 5.3%
Nebraska 1,181 2.5% $497.7m 3.3% 5,653 4.2% $214.4m 3.8%
Nevada 3,238 1.2% $1.1bn 4.0% 9,090 -1.4% $492.7m 4.5%
New 1,166 -0.2% $325.2m 2.1% 4,024 5.6% $140.2m 2.7%

Hampshire
New Jersey 8,645 4.3% $2.3bn 0.3% 18,121 -0.4% $1.0bn 0.8%
New Mexico 1,683 3.9% $250.2m 5.0% 2,651 2.8% $107.7m 5.6%
New York 31,676 2.4% $11.6bn 2.2% 84,112 1.9% $5.0bn 2.7%
22 IBISWorld.com

(2017-2022) (2017-2022) (2017-2022) (2017-2022)
North Carolina 10,859 5.3% $2.3bn 2.7% 25,470 3.0% $993.0m 3.1%
North Dakota 892 4.2% $166.4m 1.7% 2,149 -0.5% $71.5m 2.2%
Ohio 7,828 1.7% $2.4bn 0.6% 22,211 -0.9% $1.0bn 1.1%
Oklahoma 2,673 1.5% $466.0m -0.8% 7,072 -1.5% $200.4m -0.3%
Oregon 6,320 3.8% $1.5bn 5.5% 15,923 2.4% $665.7m 6.0%
Pennsylvania 8,092 3.1% $2.6bn 1.3% 22,274 0.9% $1.1bn 1.9%
Rhode Island 1,039 2.6% $235.3m 1.6% 2,462 1.6% $101.0m 2.1%
South Carolina 4,678 6.2% $907.2m 2.1% 11,515 3.7% $392.7m 2.7%
South Dakota 657 4.3% $154.1m 3.9% 1,855 1.8% $66.1m 4.4%
Tennessee 3,917 2.3% $1.6bn 3.4% 14,139 3.5% $677.5m 3.9%
Texas 25,787 3.5% $8.4bn 2.7% 73,827 1.6% $3.6bn 3.2%
Utah 3,724 3.2% $529.6m 0.5% 5,579 -1.0% $229.7m 1.2%
Vermont 738 1.7% $116.9m 5.5% 1,221 2.7% $50.4m 6.0%
Virginia 6,885 2.9% $2.4bn -0.3% 20,147 -0.7% $1.0bn 0.2%
Washington 10,139 4.2% $2.4bn 2.3% 21,892 2.3% $1.0bn 2.7%
West Virginia 630 3.1% $64.0m -1.5% 915 -2.0% $27.6m -0.9%
Wisconsin 3,483 3.0% $981.7m 2.7% 12,321 2.9% $421.8m 3.2%
Wyoming 584 8.7% $64.7m -2.1% 681 2.5% $27.9m -1.6%
23 IBISWorld.com
Business Locations The Property Management industry largely reflects commercial and multifamily residential concentrations across the
United States. Regions with relatively high levels of economic activity or below average homeownership rates
typically have a higher share of industry establishments. To this end, the industry is most concentrated in the
Southeast, West and Mid-Atlantic regions.
Southeast
The Southeast region has the highest concentration of industry establishments, accounting for 23.4% of
establishments in 2022, though this proportion is lower than the region's share of US population (25.8%). As a
result, the Southeast owes its economic strength and the presence of a high number of property management
companies to its leading share of the national population. Conversely, the region includes Florida, which contains
8.6% of establishments, but 6.5% of the population in 2022.
West
The West region accounts for 22.3% of industry establishments in 2022, much higher than its share of the US
population at 17.1%. This proportion is due to the region's higher than average level of economic activity and the
influence of California, which has the highest concentration of establishments of any state, accounting for 15.9% of
establishments in 2022. California also features a more prevalent multifamily residential market than other states,
with a homeownership rate typically below the national average.
Mid-Atlantic
The Mid-Atlantic region holds the third-highest concentration of industry establishments, accounting for 18.2% in
2022. Similar to the West, the Mid-Atlantic region's share is partly due to the influence of one state. New York
accounts for 10.1% of industry establishments in 2022, compared with a population share of only 6.1%, a situation
that arises from the state's very high level of economic activity and high property values, which raise home prices
and encourage individuals and families to rent and not buy homes. Similar to California, New York's homeownership
rate is typically below the national average. The Mid-Atlantic region is also home to New York City, Philadelphia and
Washington DC, which generate a relatively large share of the state's economic activity. Accordingly, the Mid-
Atlantic region accounts for a relatively high share of industry establishments to fulfill demand for industry services.
24 IBISWorld.com
Competitive Landscape
Market Share
Concentration
Concentration in this industry is Low
The Property Management industry is mainly composed of small independent operators. Thus, the industry has a
very low level of market share concentration, with the largest companies accounting for only a small portion of
industry revenue. The industry is highly fragmented since participants must have strong contacts and personal
knowledge of local markets. Additionally, expenses incurred by operators make it increasingly difficult for operators
to gain economies of scale. The industry is also characterized by low barriers to entry and low capital costs, making
it easier for smaller operators to enter the marketplace. IBISWorld estimates that industry concentration has grown
somewhat over the five years to 2022 as larger companies successfully acquired mid-sized operators to grow
market share. However, increasing concentration has been limited by the continued entry of nonemployers, which
are enticed by the rising rental rates and favorable market conditions over most of the last five years. In 2022, over
75.0% of industry operators are expected to be a nonemployer organizations, contributing to the high fragmentation
of the industry.
Key Success IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are:
Factors
Having contacts within key markets:
It is important for companies to establish contacts within the real estate sector since the majority of property
management clientele are gained through personal contacts and business relationships.
Having a well-defined strategy/goal:

The property management industry is highly fragmented, so it is important to have a strategic plan to differentiate
property management businesses from competitors.
Proximity to key markets:

Property managers must be in markets where there is ample demand for real estate services. Densely populated
areas or places with strong population growth tend to be key markets for industry participants.
Business expertise of operators:

Businesses and individuals often seek the advice of industry participants during real estate transactions due to their
expertise in the local real estate market, including zoning, financing and tax structures.
Ability to effectively communicate:

Property managers often serve as the liaison between owners and tenants. Therefore, they must be able to
communicate quickly and professionally
25 IBISWorld.com
Cost Structure
Benchmarks
Profit
Industry profit, measured as earnings before interest and taxes, is

estimated to account for 10.1% of industry revenue in 2022. Over five
years to 2022, industry profit has grown amid significant revenue
growth, which outpaced wages. Additionally, growing corporate profit
has created greater demand for commercial property management.
Overall, the industry makes few major purchases, such as materials or
goods, but its reliance on knowledgeable and skilled staff can hamper
an operator's ability to reduce operational costs. Despite to the
COVID-19 (coronavirus) pandemic, industry profit remained steady in
2020 and 2021, as it was supported by significant growth in demand for
residential rental and construction. Additionally, it is important to note
that 2017 produced notably low profit. If years just prior to the current
period are considered, profit has declined slightly, as consistent wage
growth has hampered profit.
Over the five years to 2027, industry profit is expected to decline

slightly due to increasing competition in an expanding market. Although
large industry players are expected to continue to consolidate their
position in the market through acquisitions, smaller players in
residential markets are expected to increasingly enter the industry.
Commercial property management will likely continue to be the most
lucrative business, as large companies can manage over 1.0 billion
square feet in space. Increased rental vacancies and subsequent
declining rent prices are also expected to contribute to this decline.
Wages
Labor constitutes property management companies' largest cost since

industry activities involve employees' knowledge of local real estate
trends, tenancy and building code laws and communication skills.
Property managers handle the day-to-day business of a facility,
including rent collection and other accounting, physical plant
maintenance and communicating with tenants to resolve complaints
and organize repairs. Property managers may also handle legal affairs,
such as representing property owners in court. Thus, retaining skilled
employees is crucial to a property management company's success.
IBISWorld expects that wage costs to account for 43.7% of industry
revenue in 2022, up from 41.9% in 2017.
26 IBISWorld.com
Purchases
Purchases make up a relatively small portion of industry revenue,

estimated to account for 2.6% of revenue in 2022. Purchases represent
such a small portion of revenue since it comprises equipment with a
useful life of less than a year, which is rarer in a real estate industry.
Purchases have decreased slightly over the past five years and are
expected to remain steady in the future.
Marketing
Marketing costs are estimated to account for 1.3% of industry revenue

in 2022. Promotional and advertising expenses are aimed at attracting
more consumers so that property managers can collect rent and
manage facilities. At a national level, industry operators use industry
sponsorships and targeted advertising in trade and business
publications. On a local level, operators use sales tools that provide
sales professionals with the market knowledge necessary to educate
and advise clients. These tools include proprietary research, internet-
based marketing systems and training about depth and breadth of
services operators offer.
Depreciation
Depreciation costs are expected to account for 1.7% share of revenue

in 2022. Depreciation costs are typically low as very little depreciable
equipment is needed to run a property management company.
27 IBISWorld.com
Rent
Rent costs are expected to account for 2.6% of industry revenue and
vary widely from operator to operator. Nonemploying enterprises
typically have very low rent costs and may work from their homes or
small offices. Conversely, the industry's major companies, which have
national recognition and hundreds of offices, occupy modern offices in
desirable locations, which raise the industry's average rent costs.
Utilities
Utility costs are expected to account for 1.9% of industry revenue in

2022. Utility costs are primarily limited to the cost of electricity for
industry operators, which powers the office buildings companies use.
Other Costs
The industry incurs several other costs, such as interest expenses,

agent and broker fees and legal and insurance fees. Some of these
latter costs may be associated with purchases due to their necessity in
managing a property. Other costs account for 36.0% of revenue in
2022.
28 IBISWorld.com
Basis of Competition in this industry is Medium and the trend is Steady

Competition
The Property Management industry has a moderate level of competition,
due to low barriers to entry and low capital requirements.
Industry participants generally provide similar services as their competitors, so operators try to focus on the quality
and range of services offered to clients. Service quality is particularly important, as property managers generally act
as the liaison between real estate investors and tenants. External competition is very minimal as a result of the
varied services provided by industry operators, however building owners may opt to use in-house managers or staff
instead. In recent years, competition from flexible-space solutions companies, such as WeWork, Knotel and
Industrious National Management Company LLC, has increased.
Property managers must also be able to satisfy a wide variety of property owner demands. Operators' ability to offer
a wide range of services has gained importance, as clients are increasingly seeking full-service property managers,
including companies that offer property management, brokerage services and research. Many property owners
prefer this structure since it is easier and more efficient to have one company manage all of their real estate needs,
as opposed to hiring separate businesses depending on a particular business function.
In addition to quality and range of services, industry participants also compete on price, as real estate investors and
landowners typically hire third-party property managers to reduce operational costs. As a result, the price can
influence a property owner's decision to outsource property management activities. This facet of competition was
particularly significant during the recession when many property owners outsourced management to save money
and focus on other business. Property managers that could offer comparable services at substantially lower fees
were able to grab more market share during this time.
It is also important for participants to attract and retain qualified and motivated personnel, as operators' staff must be
able to diplomatically handle tenant relations and act as the owner's representative. At the same time, it is important
for companies to position their services as a value added for their clients, particularly if an owner is considering
using in-house managers or staff instead of a third-party property manager.
Barriers to Barriers to Entry in this industry are Low and the trend is Steady
Entry
29 IBISWorld.com
The Property Management industry is labor intensive, as Barriers to Entry Checklist

the majority of operations require personal
communication. Subsequently, there are low capital costs Competition Medium
within the industry, as the majority of technology is used
to support traditional property management activities. At Concentration Low
the same time, there is a significant level of industry
competition due to the similarity of services. As a result,
Life Cycle Stage Mature
industry participants compete on price, quality, breadth of
service offerings and knowledge of local markets. An
established local property manager or company has the Technology Change Low
first-hand experience with local zoning laws and
regulations and is also able to use other managed Regulation & Policy Light
properties as a portfolio of successful business. A new
entrant must typically compete on price to build up a Industry Assistance Low
rapport with local property developers and owners and
work to win contracts from existing players.
The industry has a low level of regulation, which reduces

barriers to entry. Still, the industry is subject to regulators
from various local, state and national jurisdictions. As a
result, barriers to entry may vary on a state-by-state
basis, depending on local policies. These policies and
regulations include licensing procedures, prescribed
fiduciary responsibilities and antifraud prohibitions. In
addition, property managers are also indirectly subject to
various real estate specific laws, including zoning,
ordinances and licensing requirements.
Industry Globalization in this industry is Low and the trend is Increasing

Globalization
The Property Management industry exhibits a low level of globalization, with no import and export activity and
insignificant levels of foreign ownership. However, the industry's largest companies are typically multinational real
estate services companies with brokerages, agencies and management offices across the world. Over the five years
to 2022, most of the large commercial property management companies have expanded into offshore markets,
mainly through mergers and acquisitions. While no activity taking place outside the United States contributes to the
domestic industry, the rising importance of real estate in developing economies, such as China, India and Brazil,
underscores the US market's maturity and will likely compel the industry's largest companies to dedicate more
resources toward growing business abroad over the five years to 2027.
30 IBISWorld.com
Major Companies
Market Share Overview
Related Companies
Competitors Company Type Employee Segment Revenue ($m) Market Share (%) Profit ($m)
Prologis, Inc. All Star 500+ Employees 3,161.3 2.89 1,232.3
Boston Properties, Inc. All Star 500+ Employees 2,753.0 2.52 631.9
Cushman & Wakefield Plc Incumbent 500+ Employees 2,016.2 1.86 167.4
Newmark Group, Inc. Disruptor 500+ Employees 672.1 0.62 55.8
Cbre Group, Inc. Rising Star 500+ Employees 672.1 0.62 31.2
FPI Management Inc. Rising Star 500+ Employees 521.0 0.48 50.0
NAI Hiffman Rising Star 100–499 Employees 119.5 0.11 11.5
Adams & Co. Real Estate Rising Star 20–99 Employees 1.4 0 0.1
31 IBISWorld.com
Companies with 5.0% industry market share are displayed in the PDF version of this report. You can view insights for all companies associated
with this industry on my.ibisworld.com
Prologis, Inc.
Company Overview
Brands & Trading Prologis
Names
Description Prologis, Inc. is a public company headquartered in California with an estimated 2,053 employees. In the US, the
company has a notable market share in at least one industry: Property Management, where they account for an
estimated 2.9% of total industry revenue and are considered an All Star because they display stronger market
share, profit and revenue growth compared to their peers.
COMPANY TYPE Public Company

TOTAL COMPANY $3.2bn
REVENUE
EMPLOYEES 2,053
Financial Prologis, Inc. - financial performance *

Performance Revenue Growth Operating Income Growth
Year
$m % change $m % change
2017 1,958.8 22.2 763.6 22.2
2018 2,272 16 885.6 16
2019 2,592.5 14.1 1,010.6 14.1
2020 2,825.3 9 1,101.3 9
2021 3,049.7 7.9 1,188.8 7.9
2022 3,161.3 3.7 1,232.3 3.7
Source: IBISWorld
Note: * Estimates
32 IBISWorld.com
Prologis, Inc.
Company Overview
Industry Market Market Share
Share, Revenue
and Profit 2.89% Strong 0.4%
Current Year Annual Growth
(2022) (2018–22)
Industry Revenue
$3.2bn Strong 8.6%

(2022) (2018–22)
Profit Margin
38.98% Strong 0.0%

(2022) (2018–22)
33 IBISWorld.com
Company Overview
Brands & Trading Boston Properties Inc
Names
Description Boston Properties, Inc. is a public company headquartered in Massachusetts with an estimated 743 employees. In
the US, the company has a notable market share in at least one industry: Property Management, where they
account for an estimated 2.5% of total industry revenue and are considered an All Star because they display
stronger market share, profit and revenue growth compared to their peers.

REVENUE
EMPLOYEES 743
Financial Boston Properties, Inc. - financial performance *

Year
2017 1,641.4 25 376.8 25
2018 1,929.1 17.5 442.8 17.5
2019 2,221.8 15.2 510 15.2
2020 2,441.3 9.9 560.4 9.9
2021 2,642.8 8.3 606.6 8.2
2022 2,753 4.2 631.9 4.2
Source: IBISWorld
Note: * Estimates
34 IBISWorld.com
Company Overview
Share, Revenue
and Profit 2.52% Moderate 0.4%
(2022) (2018–22)
Industry Revenue
$2.8bn Moderate 9.3%

(2022) (2018–22)
Profit Margin
22.95% Moderate 0.0%

(2022) (2018–22)
35 IBISWorld.com
Company Overview
Brands & Trading Sonnenblick Goldman Burnham Real estate
Names
Description Cushman & Wakefield Plc is a public company headquartered in United Kingdom with an estimated 50,000
employees.

REVENUE
EMPLOYEES 50,000
Other Industries Commercial Leasing in the US
Financial Cushman & Wakefield Plc - financial performance *

Year
2016 1,500 N/C 113.2 N/C
2017 1,670 11.3 135.2 19.4
2018 1,722.6 3.1 133.5 -1.3
2019 1,893.2 9.9 148.3 11.1
2020 1,975.7 4.4 148.9 0.4
2021 2,016.2 2 167.4 12.4
Source: IBISWorld
Note: * Estimates
36 IBISWorld.com
Company Overview
Share, Revenue
and Profit 1.86% Moderate -0.1%
(2021) (2017–21)
Industry Revenue
$2.0bn Moderate 4.8%

(2021) (2017–21)
Profit Margin
8.3% Weak 0.2%

(2021)
(2017–21)
37 IBISWorld.com
Newmark Group, Inc.
Company Overview
Description Newmark Group, Inc. is a public company headquartered in New York with an estimated 4,200 employees.

TOTAL COMPANY $672.1m
REVENUE
EMPLOYEES 6,200
Financial Newmark Group, Inc. - financial performance *

Year
2016 264.7 N/C 20 N/C
2017 371.1 40.2 30 50
2018 478.5 28.9 37.1 23.7
2019 597.9 25 46.8 26.1
2020 592.7 -0.9 44.7 -4.5
2021 672.1 13.4 55.8 24.8
Source: IBISWorld
Note: * Estimates
38 IBISWorld.com
Newmark Group, Inc.
Company Overview
Share, Revenue
and Profit 0.62% Moderate 0.2%
(2021) (2017–21)
Industry Revenue
$672.1m Moderate 16.0%

(2021) (2017–21)
Profit Margin
8.3% Moderate 0.2%

(2021) (2017–21)
39 IBISWorld.com
Cbre Group, Inc.
Company Overview
Brands & Trading Koll real estate services Insignia financial
Names
Description Cbre Group, Inc. is a public company headquartered in Texas with an estimated 80,000 employees. In the US, the
company has a notable market share in at least one industry: Real Estate Appraisal, where they account for an
estimated 6.9% of total industry revenue and are considered a Disruptor because they display lower to medium
market share that's rising rapidly, but weaker profits compared to some of their peers.

TOTAL COMPANY $672.1m
REVENUE
EMPLOYEES 80,000
Other Industries Real Estate Sales & Brokerage in the US

Real Estate Asset Management & Consulting in the US
Commercial Real Estate in the US
Real Estate Appraisal in the US
Commercial Leasing in the US
Analyst Insights Dow Jones Sustainability Index recognizes CBRE for environmental efforts
In recognition of its many ESG efforts, including committing to net-zero carbon by 2040 and signaling the Business
Ambition for 1.5C commitment, CBRE was placed on the Dow Jones Sustainability Index for the third consecutive
year. This honor is given to only 322 companies worldwide and represents an effective merger of strong business
strategy combined with pioneering environmental and social leadership. CBRE is also ranked #11 on Barron's 100
Most Sustainable Companies list and is a Kiplinger Top 20 ESG company.
ESG
CBRE Group Inc. grows more and expands out with new acquisition
On February 20, 2020, CBRE Group Inc. (CBRE) announced that the company is going to purchase the project
management company S.A. De Eletrificaciones Y Suministros (SADES) which is based in Barcelona, Spain. With
this acquisition, SADES is going to be integrated into the company's Global Workplace Solution segment which is a
segment dedicated to providing HVAC, electrical and mechanical services. The two companies have previously
worked together in the past five years and this acquisition will also help the company grow its operations in Spain.
Competition COVID ESG
CBRE recognized as a top company for real estate

The Lipsey Survey is a leading analyzer of professional sentiment and estimated surrounding individual companies
in the real estate market. For more than half a decade, CBRE has swept the podium, taking the 'Top Global Brand in
Commercial Real Estate' award for 21 consecutive years and the 'Top Pure Development Company' award for 5
consecutive years with their subsidiary Trammell Crow.
Competition ESG
40 IBISWorld.com
Cbre Group, Inc.
Company Overview
Share, Revenue
and Profit 0.62% Moderate -0.1%
(2021) (2017–21)
Industry Revenue
$672.1m Moderate 0.9%

(2021) (2017–21)
Profit Margin
4.64% Weak -1.2%

(2021) (2017–21)
41 IBISWorld.com
Operating Conditions
Capital The level of capital intensity is Low

Intensity
The Property Management industry provides value-added
services that require communication, personnel
management and research. Most income is associated with
fees, including commissions, lease setup fees, lease
renewals, advertising costs and maintenance market
upcharges. As a result, the industry does not rely on
technology or equipment. While property managers do
organize and manage maintenance services for properties,
maintenance activities are outsourced to contractors. As a
result, equipment requirements are generally limited to
office furniture and fittings, personal computers,
telecommunication systems and general software.
IBISWorld estimates that industry operators typically spend
$0.04 in capital investment for every $1.00 spent in wages,
reflecting the industry's reliance on knowledgeable
employees. Furthermore, capital intensity has remained
relatively stable over the five years to 2022 as the industry
has not undergone any significant structural changes.
42 IBISWorld.com
Technology & Potential Disruptive Innovation: Factors Driving Threat of Change

Systems
Level Factor Disruptive Description

Effect
Very Low Rate of Very A ranked measure for the number of patents
Innovation Unlikely assigned to an industry. A faster rate of new
patent additions to the industry increases the
likelihood of a disruptive innovation occurring.
Very High Innovation Very Likely A measure for the mix of patent classes
Concentration assigned to the industry. A greater
concentration of patents in one area increases
the likelihood of technological disruption of
incumbent operators.
High Ease of Entry Likely A qualitative measure of barriers to entry. Fewer

barriers to entry increases the likelihood that
new entrants can disrupt incumbents by putting
new technologies to use.
Very High Rate of Entry Very Likely Annualized growth in the number of enterprises
in the industry, ranked against all other
industries. A greater intensity of companies
entering an industry increases the pool of
potential disruptors.
Very High Market Very Likely A ranked measure of the largest core market for
Concentration the industry. Concentrated core markets
present a low-end market or new market entry
point for disruptive technologies to capture
market share.
The rate of new patent technologies entering the industry is low, which limits the potential for innovations. A low rate does
not mean that innovations cannot occur, just that the likelihood of some innovation materializing as a threat is lower.
However, the concentration of technologies is high in this industry. This suggests that industry operators have exposure to
potentially unforeseen areas of innovation.
This technology trend is underscored by structural factors that support new entrants. An accommodative structure can
create a situation where small entrants can focus on less profitable albeit innovative industry entry points. Or, large
operators in other industries can leverage expertise in other areas to enter the industry from a new angle.
The major markets for this industry are highly concentrated, which implies that the market has a focus on key customer
segments. This presents an opportunity for strategic entrance into lower-end markets or unserved markets for innovations
to take on a disruptive trajectory.
The Property Management industry is not significantly affected by

technological advances.
Industry operators are leveraging new technological advancements, primarily new software applications, to more efficiently
perform duties. However, these new advancements have helped operators become more efficient and do not disrupt the
fundamental nature of the industry. As a result, this industry is not currently affected by technological disruption.
The level of technology change is Low
The Property Management industry relies more on the knowledge and skills of
its employees than on equipment or machinery.
Technology and systems are generally related to personal computers, back-office support systems and telecommunication
services. Computer software is mainly used to support back-office functions, including finance, accounting and project
management. The industry also uses payment systems to collect rent for tenants. Additionally, computer software is used
to automate services and increase productivity within industry operations. Property management software or investment
real estate programs can be categorized into two separate groups, which include operational and decision support.
Operational systems support day-to-day activities and are transactional in nature, such as property maintenance,
43 IBISWorld.com
management and accounting. Decision support systems consolidate operational data with industry benchmarks and market
assumptions to enable strategic analysis of an asset portfolio, such as measuring performance, forecasting cash flows and
supporting investment decisions.
Revenue The level of volatility is Low

Volatility
The Property Management industry is characterized by a low level of revenue

volatility.
Over the five years to 2022, industry revenue increased as much as 5.1% in 2017 and declined as much as 2.7% in 2022.
The industry typically follows cyclical fluctuations in property prices, as more consumers move to residential rental
properties when home prices are unaffordable. Further, shifts in rental markets are typically slow moving, with some leases
lasting more than a year. The industry has performed well as more consumers rented apartments, with the rental vacancy
rate declining an annualized 2.7% during the past five years. Over the five years to 2027, revenue volatility is expected to
be low as the nonresidential market strengthens. Demand for commercial property rentals is expected to rise over the next
five years as more companies enter the US economy and existing companies expand operations.
Regulation & The level of regulation is Light and the trend is Steady
Policy
The Property Management industry is subject to regulations by various local,
state and national jurisdictions.
These regulations include licensing procedures, prescribed fiduciary responsibilities and antifraud prohibitions. In addition,
property managers are also subject to various real estate specific laws, including zoning, ordinances and licensing
requirements. These policies are largely related to real estate owners and developers.
At the same time, property managers are expected to make sure that property owners remain compliant with local rules.
Residential property managers are required to remain in compliance with state landlord-tenant laws and property laws in
addition to the Americans with Disabilities Act and the Federal Housing Amendment Act. Additionally, various laws and
regulations impose liability on real property owners or operators for the cost of investigating, cleaning up or removing
contamination caused by hazardous or toxic substances at the property. Property managers could be held liable as
operators for such costs.
COVID-19 (CORONAVIRUS)
As a result of the coronavirus pandemic, social distancing guidelines and

regulations were put in place to curb the spread of the virus.
Accordingly, entire industries throughout the economy were forced to temporarily close, which resulted in an economic
downturn. This directly affected industry operators, as property managers were forced to abide by social distancing
44 IBISWorld.com
regulations on the state level. While industry operators try to operate as normal, companies are still affected by changing
regulations. For example, the increasing spread of coronavirus variants in the United States starting in June 2021 led the
Centers for Disease Control and Prevention (CDC) to release updated guidance, advising everyone, including vaccinated
individuals, to wear masks and keep social distance when in public. Consequently, many operators have reconsidered their
social distancing policies, with some extending their work-from-home policies indefinitely.
Industry The level of industry assistance is Low and the trend is Steady
Assistance
The Property Management industry receives no direct government assistance
in the form of subsidies.
Indirectly, government programs and policies that benefit the commercial and multifamily residential markets usually trickle
down to benefit the industry. For example, a Federal Reserve policy of maintaining low interest rates encourages new
construction and ultimately raises demand for property managers.
Industry associations provide assistance to property managers in the form of networking, representation before elected
officials and training and certification. The National Association of Residential Property Managers primarily serves
professional property managers of small multifamily and single-family residential buildings and acts to help shape laws,
policies and ordinances that benefit the industry. The Institute of Real Estate Management, an affiliate of the National
Association of Realtors, offers accreditation in a variety of professions, including to Certified Property Managers.
COVID-19 (coronavirus)
On March 27, 2020, Congress passed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2.2
trillion stimulus package, aimed at maintaining economic output and employment levels during the coronavirus pandemic.
Included in this stimulus package was also over $550.0 billion for the Small Business Administration's Payment Protection
Program (PPP). This program aimed at providing small businesses with forgivable loans to survive the economic downturn.
Industry operators qualified for parts of the CARES Act, which helped consumers to maintain rental payments. Accordingly,
industry operators were aided directly and indirectly by this act.
On March 11, 2021, Congress passed an additional stimulus package, the American Rescue Plan act. The $1.9 trillion bill
was designed to speed up the United States' recovery from the effects of the pandemic. The new package provided
extended unemployment insurance, individual stimulus checks and support to small businesses. Specifically, the program
provided emergency grants, lending and investment to small businesses to rehire and retain workers and purchase health
and sanitation equipment. As the majority of the Property Management industry's operators are small businesses, the
stimulus package has benefited many businesses in the industry. Stimulus checks given to individuals also helped the
industry, as some of this money went towards paying rent and industry related fees. Included in pandemic related
measures was an eviction moratorium, which meant that operators could not evict residential tenants for a period of time.
The effects of this were not long-lasting, however, as that moratorium has now ended.
45 IBISWorld.com
Key Statistics
Industry Data
Domestic Rental
Year ($m) ($m) (Units) (Units) (Units) ($m) ($m) ($m) ($m) rates (%)
2013 74,446 44,389 222,948 210,358 706,900 N/A N/A 34,711 N/A 8.30
2014 80,548 46,276 235,190 220,640 736,775 N/A N/A 36,611 N/A 7.60
2015 85,958 49,591 245,300 229,975 748,836 N/A N/A 38,072 N/A 7.10
2016 93,669 51,139 254,363 237,581 770,232 N/A N/A 39,243 N/A 6.90
2017 98,422 51,908 268,551 252,170 801,412 N/A N/A 41,278 N/A 7.20
2018 101,182 54,907 283,243 266,684 830,185 N/A N/A 42,765 N/A 6.90
2019 104,923 57,214 293,972 276,656 849,416 N/A N/A 44,457 N/A 6.80
2020 108,103 59,440 307,090 289,014 883,125 N/A N/A 46,488 N/A 6.30
2021 112,442 61,816 320,650 301,842 917,907 N/A N/A 48,326 N/A 6.10
2022 109,351 60,709 325,838 307,621 911,597 N/A N/A 47,795 N/A 6.30
2023 109,901 61,322 334,601 316,374 924,469 N/A N/A 48,383 N/A 6.40
2024 111,247 62,257 344,277 325,933 941,519 N/A N/A 49,215 N/A 6.50
2025 112,551 63,099 353,368 334,898 957,522 N/A N/A 50,000 N/A 6.60
2026 113,986 64,049 361,986 343,358 973,480 N/A N/A 50,794 N/A 6.60
2027 115,765 65,130 370,811 351,969 991,196 N/A N/A 51,692 N/A 6.70
Annual Change
Domestic Rental
Year (%) (%) (%) (%) (%) (%) (%) (%) (%) rates (%)
2013 5.97 3.88 3.26 3.48 -0.21 N/A N/A -1.43 N/A -4.60
2014 8.19 4.25 5.49 4.88 4.22 N/A N/A 5.47 N/A -8.44
2015 6.71 7.16 4.29 4.23 1.63 N/A N/A 3.99 N/A -6.58
2016 8.97 3.12 3.69 3.30 2.85 N/A N/A 3.07 N/A -2.82
2017 5.07 1.50 5.57 6.14 4.04 N/A N/A 5.18 N/A 4.34
2018 2.80 5.77 5.47 5.75 3.59 N/A N/A 3.60 N/A -4.17
2019 3.69 4.20 3.78 3.73 2.31 N/A N/A 3.95 N/A -1.45
2020 3.03 3.89 4.46 4.46 3.96 N/A N/A 4.56 N/A -7.36
2021 4.01 3.99 4.41 4.43 3.93 N/A N/A 3.95 N/A -3.18
2022 -2.75 -1.80 1.61 1.91 -0.69 N/A N/A -1.10 N/A 3.27
2023 0.50 1.00 2.68 2.84 1.41 N/A N/A 1.23 N/A 1.58
2024 1.22 1.52 2.89 3.02 1.84 N/A N/A 1.72 N/A 1.56
2025 1.17 1.35 2.64 2.75 1.69 N/A N/A 1.59 N/A 1.53
2026 1.27 1.50 2.43 2.52 1.66 N/A N/A 1.58 N/A 0.00
2027 1.56 1.68 2.43 2.50 1.81 N/A N/A 1.76 N/A 1.51
Key Ratios
Imports/ Exports/ Revenue per Wages/ Employees per
IVA/Revenue Demand Revenue Employee Revenue estab.
Year (%) (%) (%) ($'000) (%) (Units) Average Wage ($)
2013 59.6 N/A N/A 105 46.6 3.17 49,103
2014 57.5 N/A N/A 109 45.5 3.13 49,690
2015 57.7 N/A N/A 115 44.3 3.05 50,842
2016 54.6 N/A N/A 122 41.9 3.03 50,949
2017 52.7 N/A N/A 123 41.9 2.98 51,507
2018 54.3 N/A N/A 122 42.3 2.93 51,512
2019 54.5 N/A N/A 124 42.4 2.89 52,339
2020 55.0 N/A N/A 122 43.0 2.88 52,641
2021 55.0 N/A N/A 123 43.0 2.86 52,648
2022 55.5 N/A N/A 120 43.7 2.80 52,430
2023 55.8 N/A N/A 119 44.0 2.76 52,336
2024 56.0 N/A N/A 118 44.2 2.73 52,272
2025 56.1 N/A N/A 118 44.4 2.71 52,218
2026 56.2 N/A N/A 117 44.6 2.69 52,178
2027 56.3 N/A N/A 117 44.7 2.67 52,151
Figures are inflation adjusted to 2022
46 IBISWorld.com
Industry Financial Statement

Historical Average
Industry Multiples 2017 2018 2019 2020 3-Year 5-Year 10-Year

EBIT/Revenue 13.3 12.8 18.9 19.6 17.1 15.6 13.0
EBITDA/Revenue 16.3 17.4 24.5 25.5 22.5 20.0 16.6
Leverage Ratio 10.1 6.1 4.3 4.1 4.8 7.0 7.7
Industry Tax Structure 2017 2018 2019 2020 3-Year 5-Year 10-Year
Taxes Paid/Revenue 4.2 4.8 5.5 5.3 5.2 4.8 4.5
Income Statement 2017 2018 2019 2020 3-Year 5-Year 10-Year

Total Revenue 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Business receipts 80.4 83.4 82.2 82.8 82.8 82.0 80.1
Cost of goods 0.0 1.4 14.6 21.5 12.5 7.5 4.5
Gross Profit 98.9 98.6 85.4 78.5 87.5 92.1 94.8
Expenses
Salaries and wages 31.1 25.1 20.9 18.6 21.5 25.6 29.3
Advertising 1.2 4.2 4.5 4.5 4.4 3.1 2.0
Depreciation 2.6 2.8 3.0 2.6 2.8 2.6 2.4
Depletion 0.0 0.0 0.0 0.2 0.1 0.0 0.0
Amortization 0.5 1.9 2.6 3.2 2.6 1.7 1.1
Rent paid 3.9 6.6 4.7 3.7 5.0 4.6 4.6
Repairs 1.6 1.9 1.1 0.6 1.2 1.3 1.5
Bad debts 0.9 2.7 3.0 3.2 3.0 2.1 1.6
Employee benefit programs 2.1 4.2 2.9 2.2 3.1 2.7 2.6
Compensation of officers 7.9 3.3 3.1 1.8 2.7 4.7 6.4
Taxes paid 4.2 4.8 5.5 5.3 5.2 4.8 4.5
Interest Income 1.5 1.9 1.8 1.6 1.7 1.7 1.8
Other Income
Royalties 0.5 3.0 1.9 1.0 2.0 1.4 1.1
Rent Income 3.6 1.1 0.7 0.4 0.7 1.7 2.5
Net Income 5.0 5.2 9.0 9.7 8.0 7.0 4.6
Balance Sheet 2017 2018 2019 2020 3-Year 5-Year 10-Year
Assets
Cash and Equivalents 0.0 46.3 52.0 52.1 50.1 30.1 16.9
Notes and accounts receivable 0.0 0.0 64.5 64.5 43.0 25.8 14.0
Allowance for bad debts 0.0 0.0 1.2 1.6 0.9 0.5 0.3
Inventories 0.0 54.4 27.5 0.0 27.3 16.4 8.2
Other current assets 0.0 0.0 34.5 34.5 23.0 13.8 8.5
Other investments 0.0 57.2 0.0 0.0 19.1 11.4 16.4
Property, Plant and Equipment 0.0 55.2 0.0 0.0 18.4 11.0 27.5
Accumulated depreciation 0.0 85.2 44.8 85.1 71.7 43.0 27.5
Intangible assets (Amortizable) 0.0 0.0 3.3 35.3 12.9 7.7 5.2
Accumulated amortization 0.0 0.0 10.0 20.6 10.2 6.1 3.4
Other assets 0.0 19.8 -18.7 -21.3 -6.7 -4.0 -0.6
Total assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Accounts payable 0.0 65.9 65.9 65.9 65.9 39.5 20.4
Liabilities and Net Worth

Mort, notes, and bonds under 1 yr 0.0 0.0 0.0 0.0 0.0 0.0 1.0
Other current liabilities 0.0 0.0 73.0 73.0 48.7 29.2 16.1
Loans from shareholders 0.0 34.1 34.1 34.1 34.1 20.4 12.0
Mort, notes, bonds, 1 yr or more 0.0 81.9 0.0 0.0 27.3 16.4 22.1
Other liabilities 0.0 80.8 -18.6 -18.6 14.5 8.7 6.4
Total liabilities 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Capital stock 0.0 38.2 34.8 38.2 37.0 22.2 14.5
Additional paid-in capital 0.0 79.7 45.4 45.4 56.8 34.1 36.4
Retained earnings, appropriated 0.0 0.0 0.2 0.6 0.3 0.2 0.1
Retained earnings-unappropriated 0.0 -133.4 -133.4 -133.4 -133.4 -80.1 -43.4
Cost of treasury stock 0.0 33.0 0.0 0.0 11.0 6.6 3.7
Net worth 0.0 45.7 64.9 95.3 68.7 41.2 39.7
47 IBISWorld.com
Liquidity Ratios 2017 2018 2019 2020 3-Year 5-Year 10-Year

Current Ratio 1.6 1.5 1.3 1.1 1.3 1.4 1.5
Quick Ratio 1.6 0.7 1.1 1.1 1.0 1.2 1.3
Sales/Receivables 30.8 30.8 1.5 1.5 11.2 19.0 26.3
Days' Receivables 0.0 0.0 248.7 248.8 165.9 99.5 54.1
Days' Inventory 47.2 47.2 724.6 0.0 257.3 173.3 107.6
Inventory Turnover 16.8 0.0 0.5 16.8 5.8 10.2 14.8
Payables Turnover 0.4 0.0 0.2 0.3 0.2 0.3 0.4
Days' Payables 529.6 529.6 529.6 529.6 529.6 529.6 428.5
Sales/Working Capital 52.4 52.4 2.9 406.2 153.8 113.2 84.8
Coverage Ratios 2017 2018 2019 2020 3-Year 5-Year 10-Year

Interest Coverage 328.0 477.5 427.8 429.6 445.0 405.3 337.7
Debt Service Coverage Ratio 0.8 0.8 2.7 0.8 1.4 1.2 1.0
Leverage Ratios 2017 2018 2019 2020 3-Year 5-Year 10-Year

Fixed Assets/Net Worth 1.9 -8.3 0.9 1.5 -2.0 -0.4 0.7
Debt/Net Worth 2.2 -3.6 1.5 1.0 -0.3 0.7 1.4
Tangible Net Worth 0.0 0.5 0.6 1.0 0.7 0.4 0.4
Operating Ratios 2017 2018 2019 2020 3-Year 5-Year 10-Year

Return on Net Worth, % 17.3 -42.9 27.5 19.4 1.3 7.7 14.4
Return on Assets, % 8.0 12.1 17.8 18.5 16.1 12.9 11.5
Sales/Total Assets 0.9 0.9 0.9 0.9 0.9 0.9 1.0
EBITDA/Revenue 16.3 17.4 24.5 25.5 22.5 20.0 16.6
EBIT/Revenue 13.3 12.8 18.9 19.6 17.1 15.6 13.0
Cash Flow & Debt

Service Ratios (% of 2017 2018 2019 2020 3-Year 5-Year 10-Year
sales)
Cash from Trading -24.8 -24.8 33.4 -24.8 -5.4 -13.2 -17.5
Cash after Operations -40.7 -40.7 14.3 -40.7 -22.3 -29.7 -33.8
Net Cash after Operations -39.6 -39.6 9.0 -39.6 -23.4 -29.9 -33.6
Debt Service P&I Coverage -10.7 -10.7 5.3 -10.7 -5.4 -7.5 -8.7
Interest Coverage (Operating
-0.1 -0.1 0.2 -0.1 0.0 -0.1 -0.1
Cash)
Source: IRS SOI Tax Stats; US Census Bureau; IBISWorld
48 IBISWorld.com
Additional Resources
Additional National Property Management Association
Resources http://www.npma.org
National Association of Realtors

http://www.nar.realtor
US Federal Reserve
http://www.federalreserve.gov
Industry Jargon CLASS A BUILDING

A commercial office building that commands the highest rent due to the attractiveness and prestige associated with
location, tenancy, amenities and overall desirability.
DWELLING
A place of residence, such as an apartment or house.
REAL ESTATE INVESTMENT TRUST (REIT)

A legal entity that uses pooled investor capital to purchase and manage income property or mortgage loans. To
qualify as an REIT, the entity must distribute at least 90.0% of taxable income.
VACANCY RATE
The amount of unoccupied real estate space as a percentage of total available space.
Glossary BARRIERS TO ENTRY

High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for
new companies to enter an industry.
CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than
$0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of
capital for every $1 of labor.
CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e.
year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving
only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using
the US Bureau of Economic Analysis’ implicit GDP price deflator.
DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their country of origin. It is derived
by adding imports to industry revenue, and then subtracting exports.
EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers
and executives within the industry.
ENTERPRISE
A division that is separately managed and keeps management accounts. Each enterprise consists of one or more
establishments that are under common ownership or control.
ESTABLISHMENT
The smallest type of accounting unit within an enterprise, an establishment is a single physical location where
business is conducted or where services or industrial operations are performed. Multiple establishments under
common control make up an enterprise.
EXPORTS
Total value of industry goods and services sold by US companies to customers abroad.
IMPORTS
Total value of industry goods and services brought in from foreign countries to be sold in the United States.
INDUSTRY CONCENTRATION
An indicator of the dominance of the top four players in an industry. Concentration is considered high if the top
49 IBISWorld.com
players account for more than 70% of industry revenue. Medium is 40% to 70% of industry revenue. Low is less
than 40%.
INDUSTRY REVENUE
The total sales of industry goods and services (exclusive of excise and sales tax); subsidies on production; all other
operating income from outside the firm (such as commission income, repair and service income, and rent, leasing
and hiring income); and capital work done by rental or lease. Receipts from interest royalties, dividends and the sale
of fixed tangible assets are excluded.
INDUSTRY VALUE ADDED (IVA)

The market value of goods and services produced by the industry minus the cost of goods and services used in
production. IVA is also described as the industry's contribution to GDP, or profit plus wages and depreciation.
INTERNATIONAL TRADE
The level of international trade is determined by ratios of exports to revenue and imports to domestic demand. For
exports/revenue: low is less than 5%, medium is 5% to 20%, and high is more than 20%. Imports/domestic demand:
low is less than 5%, medium is 5% to 35%, and high is more than 35%.
LIFE CYCLE
All industries go through periods of growth, maturity and decline. IBISWorld determines an industry's life cycle by
considering its growth rate (measured by IVA) compared with GDP; the growth rate of the number of establishments;
the amount of change the industry's products are undergoing; the rate of technological change; and the level of
customer acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENT
Businesses with no paid employment or payroll, also known as nonemployers. These are mostly set up by self-
employed individuals.
PROFIT
IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s profitability. It is calculated as
revenue minus expenses, excluding interest and tax.
REGIONS
West | CA, NV, OR, WA, HI, AK
Great Lakes | OH, IN, IL, WI, MI
Mid-Atlantic | NY, NJ, PA, DE, MD
New England | ME, NH, VT, MA, CT, RI
Plains | MN, IA, MO, KS, NE, SD, ND
Rocky Mountains | CO, UT, WY, ID, MT
Southeast | VA, WV, KY, TN, AR, LA, MS, AL, GA, FL, SC, NC
Southwest | OK, TX, NM, AZ
VOLATILITY
The level of volatility is determined by averaging the absolute change in revenue in each of the past five years.
Volatility levels: very high is more than ±20%; high volatility is ±10% to ±20%; moderate volatility is ±3% to ±10%;
and low volatility is less than ±3%.
WAGES
The gross total wages and salaries of all employees in the industry.
50 IBISWorld.com
Call Preparation Questions

Role Specific Sales & Marketing
Questions
Does your company offer services primarily to consumers or businesses?
Operators primarily work with businesses in professional services or residential markets.
Are there segments of your business that increase demand when economic growth is slow?
When economic growth is slow the industry benefits from consumers from residential markets, as rental vacancy
rates decline. As a result, the outbreak of the COVID-19 (coronavirus) pandemic created an increase of potential
customers for this industry.
Strategy & Operations
How are you taking advantage of the commercial real estate boom in major cities? Did this change due to the
COVID-19 (coronavirus) pandemic?
Operators had been expanding their operations, in addition to the entrance of nonemployers to the industry.
However, this changed drastically in 2020 amid the COVID-19 (coronavirus) pandemic, as the commercial real
estate industry was decimated by declining business and consumer activity.
In subsequent years, however, demand for nonresidential construction and rental has increased, bolstering industry
growth
How has your company coped with rising wage costs over the past year?
Operators in the industry have relatively coped with rising wage costs by outsourcing, but revenue growth has
consistently outpaced wage growth in this industry, leading to healthy profit margins.
Technology
Have you successfully cut wage costs through automation in recent years?
Wage costs have been minimized through the adaptation of outsourcing certain obligations. Additionally,
advancement in technology has enabled operators to automate repetitive tasks for employees, which saves on
wage costs.
How much does your company spend on new technology annually? How does this compare with your competitors?
In this industry, technology is mainly used to manage back-office functions. As a result, most operators do not spend
much on new technology.
Compliance
How does your company ensure your properties are up to code?
Industry participants make sure properties are up to code by following both federal and state guidelines.
Is your company adequately prepared for new environmental standards?
Operators in the industry have become increasingly sensitive to environmental issues and strive to meet such
standards.
Finance
How does your company's profit compare to your main competitors'?
Profit in this industry for operators is relatively high compared to other industries.
Profit is expected to decline slightly moving forward as demand wanes marginally, but still remain strong.
What ongoing financing challenges does your company face?
One of the biggest financing challenges for operators in this industry involve wage costs. As wages continue to tick
higher across the economy, industry operators must pay a premium to retain skilled workers.
IBISWORLD.COM 51
External Impacts Impact: Rental vacancy rates

Questions How does the rental vacancy rate affect demand for your services? When the rate is high, how do you prepare?
When the residential vacancy rate is high, industry demand falls, and vice versa. Since home prices and consumer
income levels influence residential rental vacancy rates, consumers tend to rent rather than buy homes when
consumers have less disposable income or when the price of homeownership is high.
Impact: Homeownership rate

How do you track trends in homeownership? How have you adjusted your rates during times of low
homeownership?
As the homeownership rate rises, demand for industry services generally declines, since the majority of industry
revenue is associated with residential rental property management services.
Impact: Office rental vacancy

How does a rise in office rental vacancy affect your company?
A high office rental vacancy rate indicates a large amount of unused commercial space and low industry demand.
Office rental vacancy is expected to rise in 2022, posing a potential threat to industry operators.
Internal Issues Issue: Ability to effectively communicate

Questions How can you improve your staff's communication skills?
Property managers often serve as the liaison between owners and tenants, and must be able to communicate
quickly and professionally. As a result, communication is important. This leads operators to focus on professional
development for employees through increasing communication skills.
Issue: Having a well-defined strategy/goal

How does your company differentiate itself from its competitors? How often does your company's strategic plan get
reviewed?
The property management industry is highly fragmented, so it is important to have a strategic plan to differentiate
property management businesses from competitors. Industry operators tend to focus on specific types of properties
within a given sector or industry.
Issue: Proximity to key markets

What range does your company have in terms of viable operating area? Do you have a competitive pricing strategy?
Property managers must be in markets where there is ample demand for real estate services. Densely populated
areas or places with strong population growth tend to be key markets for industry participants.
IBISWORLD.COM 52
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INDUSTRY REPORT 53131

Property Management in the US

Commercial growth: The US homeownership rate is projected to continue increasing,

Matt Pantalon | July 2022

IBISWorld.com 1-800-330-3772 [email protected]

INDUSTRY AT A GLANCE................................ 7 MAJOR COMPANIES...................................... 31

CALL PREPARATION QUESTIONS............... 51

Recent Virtual tours have become more popular

This section last udpated October 07, 2022

About This Industry

Major Players Prologis, Inc.

Boston Properties, Inc.

Cushman & Wakefield Plc

Newmark Group, Inc.

Cbre Group, Inc.

FPI Management Inc.

Adams & Co. Real Estate

Main Activities The primary activities of this industry are:

Managing facilities maintenance services

Managing trash and recycling collection

Legally representing property owners

Finding and screening tenancy applicants

Coordinating repair contractors

The major products and services in this industry are:

Residential property management

Nonresidential property management

Real estate agent and brokerage services

Conveyancing Services in the US

RELATED INTERNATIONAL INDUSTRIES

$109.4bn 4.8% 4.7pp

Annual Growth Annual Growth Annual Growth

10.1% Life Cycle Competition

Annual Growth Annual Growth NEGATIVE IMPACT

 Demand for commercial rental properties will likely increase,

 The residential construction and housing markets have

Annual Growth Annual Growth Annual Growth

2017–2022 2022–2027 2017–2027

Products & Services Segmentation

Major Players SWOT

Low & Steady Barriers to Entry

High Revenue Growth (2017-2022)

Low Revenue Growth (2005-2022)

Executive Summary Commercial growth: The US homeownership rate is projected to continue

Key External Corporate profit

Rental vacancy rates

Office rental vacancy

Current The Property Management industry offers third-party or outsourced

HOMEOWNERSHIP IS UP, BUT RENTAL VACANCY RATES REMAIN LOW

RESIDENTIAL RENTAL DEMAND

The industry has experienced growing demand from consumers seeking

Historical Performance Data

RESIDENTIAL RENTAL DEMAND DECLINES

The value of residential construction is expected to fall at an annualized

TRANSITION TO NONRESIDENTIAL MARKETS

Nonresidential property managers are forecast to experience relatively

Industry participants are projected to benefit from a rise in outsourcing

The expansion of services and some growth in demand are forecast to

Performance Outlook Data

IVA is growing at a slightly faster rate than US GDP