Industry Analysis & Industry Trends
Commercial real estate agents deal with the selling, auctioning and leasing of commercial property in Australia. Over the past five years, the industry has struggled to respond to circumstances arising from the global financial crisis that led to high levels of volatility in the industry and several years of significant revenue decline. These circumstances arose as business sentiment dropped and lending standards escalated, leading to many businesses only having opportunities to invest in low-risk ventures. As property upgrades would be seen as a secondary priority in many cases, sale volumes dropped significantly during this period. Furthermore, the recovery has been slow, with a false dawn occurring during 2009-10... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry are low among commercial real estate agents in Australia. The industry is highly labour intensive and therefore requires little capital expenditure to establish operations. Regulation is primarily concerned with minimum licencing requirements, making it easy for people to enter the industry. Furthermore, the industry cost structure is mainly made up of variable costs, making it difficult for companies to take advantage of economies of scale. As such, new players are able to maintain better control of their costs since new managers do not require such high wages.
While the barriers to entry are low, attaining clients is more problematic... purchase to read more