The US commercial leasing market has been hit hard by tight lending conditions and the recession, which has led to industry revenue falling at a negative compound annual growth rate (CAGR) of 2.1% over the five years to 2012, to be worth $152.3 billion.
Since the recession began, demand for commercial real estate has plummeted as companies downsized or went out of business. Industry operators struggled to keep properties occupied, which forced participants to aggressively compete on price.
Fortunately for industry operators, the market is turning around as the slow recovery of the US economy is mainly driven by strong business growth.
These improvements in the general economy will lead to industry growth, as new businesses enter the market and existing firms expand operations.
As a result, US commercial leasing industry revenue is expected to rise 3.2% in 2012. This growth is projected to continue over the five years to 2017 at a CAGR of 4.5% per year, to reach a market value of $190.2 billion.
Similarly, industry profitability (earnings before interest and taxes) is expected to rise from 44.6% in 2012 to 55.4% by 2017.
Key players within the US commercial leasing market include; Brookfield Office Properties, General Growth Properties Inc, Simon Property Group Inc, and Vornado Reality Trust.
For more information on the US commercial leasing market, see the latest research: US Commercial Leasing Market Report
Follow us on Twitter @CandMResearch
Companiesandmarkets.com issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.