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Property Management Services Market Reports: Latest Industry Trends

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Topics under Property Management

Global Property Management Industry Statistics

Companies operating in the global real estate management and development industry are involved in the management of both residential and non-residential real estate. Property management firms fulfil a range of tasks, including collecting rent, removing waste, providing security, leasing and other activities related to the smooth running of any property. These firms constitute a means of communication for owners and renters. They are in charge of vetting potential renters by checking their credit history, rental history and the tenant’s ability to pay rent.

Property management also entails drawing up the necessary legal documents pertaining to property rental. Enterprises involved in this industry also act as a mediator between renter, owner and insurance companies in the event of damage to property or maintenance issues. Technology continues to play an increasingly important role in property management with the use of computer-aided facility management.

Property Management Market Challenges & Trends

Prior to the housing crash, the real estate boom was contributing to property management revenue. Property owners opted to outsource property management activities at higher rates to cut down on operational costs and liabilities, reports IBISWorld. The credit crunch strangled the real estate sector, prompting the economic recession of 2007-2009, and industry revenue plummeted.

Commercial real estate values have plunged as much as 40% since 2007, according to research from the Urban Land Institute and PricewaterhouseCoopers. The number of property management companies has also fallen over the same period, prompting consolidation in a bid to boost margins and spread out risk. Consolidation operations have also sought to meet demand in the non-residential market.

Regional Property Management Market Share

IBISWorld estimates the US property management sector to be worth $48 billion. There are more than 150,000 property management companies in the US, employing more than 600,000 people. The industry is expected to grow through 2017 due to falling homeownership rates.

Property Management Industry Leaders

Leading enterprises currently operating in the global property management industry include CB Richard Ellis, Savills in China, Cushman & Wakefield, China Overseas Property Management, Shenzhen Catic Property Management, Jones Lang LaSalle, Colliers International Property, and Before and After.

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Parent industry: Real Estate
Related industries: Residential Real Estate, Commercial Real Estate, Industrial Real Estate

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