Commercial Real Estate Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

When analyzing rate benchmarking of commercial real estate services, the type of property, location, condition of property, size, type, and quality of tenant plays a crucial role. In our study, we have analyzed the rate of different commercial properties in various countries such as the U.S., China, Japan, and the UK. The rates of the properties have been on the rise due to increasing demand for office space. In Q1 2023, the average price of office space in U.S. was around USD 38 per square foot. The price of retail was on an average of USD 18.09 per square foot. In 2021, average property prices for office purposes amounted to USD 1,486 per square meter in China.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, the deputy manager of transport service at CBRE receives a 7% - 9% higher base salary compared to the salary received by the deputy manager of transport services working in companies such as Cushman & Wakefield, and Savills. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the commercial real estate services category over the last two years:

In May 2023, Agriplay Ventures Inc. announced a partnership with Savills to leverage its network of real estate services to expand its reach and boost its growth. Agriplay Ventures Inc. and its territorial licensees benefit from professional services offered through Savills' extensive network of representatives and partnerships. This network covers all provinces or states in Canada and the United States, as well as various locations worldwide.

In May 2023, CBRE Group, a leading commercial real estate services and investment firm, announced a worldwide strategic collaboration between its property management division and Deepki, a provider of real estate sustainability data solutions. This partnership entails the global implementation of Deepki's data-intelligence platform, Deepki Ready, which is specifically designed to assist landlords in achieving sustainability goals.

In December 2022, CBRE Group acquired H2M Sverige AB a property management service company in Sweden. Post completion of the acquisition, H2M will operate as part of the CBRE Global Workplace Solutions (GWS) group and strengthens the presence of CBRE in the country.

In October 2022, BBG, a commercial real estate service firm, has acquired VSI Appraisal Group in Columbus. With this acquisition, BBG will enhance its presence in Columbus while adding affordable housing specialty to its portfolio of services.