Los Angeles, CA (PRWEB) October 19, 2012
The Global Commercial Real Estate industry includes firms that specialize in a variety of real estate activities, including brokerage, property and facilities management, research and analytics, consulting, valuation, appraisal, construction and asset management. Changes in the commercial real estate market, including vacancy rates, property values and credit activity, influence demand for industry services. According to IBISWorld industry analyst Andrea Alegria, the global recession adversely affected the industry, with revenue expected to decline an annualized rate of 2.8% to $5.2 trillion in the five years to 2012. Major industry markets have contended with high unemployment, deficit and debt crises in the United States and Europe, which have created uncertain business environments and staved off investment in commercial real estate. During 2008 and 2009, credit became severely constrained and real estate market activity contracted sharply in most markets around the world as a result of the global financial crisis. Industry revenue declined 7.2% and 8.8% in 2008 and 2009, respectively, as real estate values and transaction activity declined.
|(Photo credit: Wikipedia)|
In addition to growth, the ability of firms to operate in multiple markets minimizes risks related to specific real estate markets in local countries or regions. As clients increasingly look for firms that offer a full range of services across a wide geographic area the number of mergers, acquisitions and strategic alliances is expected to increase over the five years to 2017. In the next five years, revenue is forecast to rise. During this period, expanding business and retail operations will drive industry growth, as unemployment declines and consumer disposable income and corporate profit improve. Nonetheless, the industry will still be challenged by weak economic conditions in Europe and the implications of a significant slowdown in China's economy. For these reasons, industry research firm IBISWorld has updated its report on the Global Commercial Real Estate industry.
Taken from: http://www.prweb.com/releases/2012/10/prweb10033286.htm