Property Management in the US Industry Market Research Report ...

Los Angeles, CA (PRWEB) June 07, 2012

Historically, the Property Management industry has been immune to economic downturns. During such times, industry clients often outsource property management duties to industry operators to lower costs. But according to IBISWorld industry analyst Dale Schmidt, ?Outsourcing failed to save the industry during the Great Recession in 2008 and 2009 largely because the recession and credit crunch originated within the real estate sector.? According to a report from PricewaterhouseCoopers and the Urban Land Institute, commercial real estate values have fallen 40.0% since their mid-2007 peaks. This dramatic decline represents the worst drop in values since the Great Depression, even eclipsing the 1990s savings-and-loans crisis. As a result, industry revenue is expected to decline at an average annual rate of 3.5% to $ 48.3 billion in the five years to 2012, despite 5.5% growth in 2012. In addition to revenue, the number of firms is expected to decline at an average rate of 2.3% annually to 150,254 during the same period as operators consolidate operations to improve margins and diversify risk.

Before the subprime crisis, revenue was increasing as the industry benefited from the real estate boom, and revenue reached $ 56.2 billion in 2007. At that time, residential and commercial lessors raised construction levels to cash in on the dramatic rise in property values. The rise in construction supported industry growth as more real estate requiring property management services became available. ?Real estate owners also began to outsource property management services at higher rates to reduce operational costs and liabilities,? says Schmidt. The Property Management industry is highly fragmented; the vast majority of firms employ fewer than five people. Only two operators, CB Richard Ellis Group Inc. and Jones Lang LaSalle Inc., have market shares of 5.0% or greater.

Benefiting the industry, the US homeownership rate has steadily declined, thus increasing the number of renters. Declining homeownership should support industry growth, since 63.8% of revenue is associated with residential rental-property management. Also, as the economy recovers, unemployment will decline, discretionary spending will increase and demand for residential and commercial real estate leasing will improve. Given these positive conditions, industry revenue is expected to jump in 2013, matching growth in 2012. Over the five years to 2017, revenue is projected to continue rising at a moderate pace. For more information, visit IBISWorld?s Property Management in the US industry report page.

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IBISWorld industry Report Key Topics

Establishments in this industry manage residential and non-residential real estate for others. Property management responsibilities relate to the overall operation of the real estate asset including leasing, maintenance, rent collection, trash removal and security.

Industry Performance

Executive Summary

Key External Drivers

Current Performance

Industry Outlook

Industry Life Cycle

Products & Markets

Supply Chain

Products & Services

Major Markets

Globalization & Trade

Business Locations

Competitive Landscape

Market Share Concentration

Key Success Factors

Cost Structure Benchmarks

Barriers to Entry

Major Companies

Operating Conditions

Capital Intensity

Key Statistics

Industry Data

Annual Change

Key Ratios

About IBISWorld Inc.

Recognized as the nation?s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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