Commercial Property Managers


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Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 16,000 commercial property management companies in the US maintain and manage real estate assets, such as office buildings, industrial buildings, warehouses, and other nonresidential buildings. Firms generate the majority of revenue from property management services, which include general maintenance, engineering, operations, landscaping, janitorial, and sustainability services.

Dependence on Subcontractors

Commercial property managers typically rely on subcontractors for certain types of services, such as plumbing and electrical repair, HVAC maintenance, or waste pick-up.

Competition from Property Tech

Advances in real estate and property tech have made property self-management less complex and more feasible for commercial real estate (CRE) owners.

Industry size & Structure

The average commercial property management firm operates out of a single location, employs about 11 workers, and generates between $1 million and $2 million annually.

    • The commercial property management industry consists of more than 16,000 firms that employ about 172,000 workers and generate about $27 billion annually.
    • The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for over 40% of industry revenue. About half of all firms generate less than $500,000 annually.
    • Large firms with commercial property management operations include CBRE, JLL, and Cushman and Wakefield. Large firms often have global operations.
                            Industry Forecast
                            Commercial Property Managers Industry Growth
                            Source: Vertical IQ and Inforum

                            Recent Developments

                            Mar 17, 2025 - Commercial Real Estate Loan Delinquencies Rise
                            • At the end of 2024, US commercial real estate (CRE) loan delinquencies hit a record high, according to the Federal Reserve. By the end of the fourth quarter last year, 1.57% of the $3 trillion in outstanding CRE loans were delinquent – or about $25 billion. That’s up about 88% compared to the amount of CRE loan delinquencies a decade ago. The Fed noted that most of the delinquencies were in the troubled office sector, but multifamily delinquencies have also seen recent increases.
                            • Amid a spate of retailer bankruptcies, retail vacancies may be poised to rise in 2025 after they fell to record lows during the post-Covid reopening, according to Bisnow. High-profile retailer bankruptcies – including Party City, Joann, Big Lots, and Rite Aid – have forced landlords to try to backfill empty space or negotiate with lenders. In 2024, 7,325 retail storefronts closed shop and about 15,000 more are expected to shutter in 2025, according to Coresight Research. That surpasses the 10,000 store closures in the first year of the pandemic. Retail space is also under pressure from some large firms downsizing their footprints, including Macy’s. In the fourth quarter of 2024, the national retail vacancy rate was just 4.1%, according to real estate firm JLL, but vacancies are expected to increase this year.
                            • Some investors are warming up to US office real estate after souring on the market for five years, according to The Wall Street Journal. Buyers are scooping up properties with high vacancies for bargain prices, and others are buying premium properties saddled with high debt. Investors are also purchasing older properties to convert them into apartments. According to data firm MSCI, office building sales volumes rose 20% in 2024, reaching $63.6 billion. However, 2024 activity is still well below the average annual volume of $142.9 billion from 2015 to 2019. Industry watchers suggest that leasing activity is picking up as more companies require workers to be in the office. While the office market is showing signs of improvement, it still faces high vacancy rates and loan delinquencies, leading many investors to prefer other real estate types, such as warehouses and apartments.
                            • The industrial real estate market continues to undergo significant change as demand downshifts compared to the frenzy for industrial space during the pandemic, according to CommercialEdge. In 2022 and 2023, more than 1.1 billion square feet of industrial space came online. In 2024, only 358 million square feet were added. While that is a significant drop from the pandemic-era boom, it was still high compared to historical norms. Construction starts for industrial properties slowed to 236 million square feet in 2024, and the downward trend is projected to continue in 2025. The market is shifting in other ways, as demand moves from warehousing and distribution hubs to manufacturing facilities and data centers.
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