Tuesday, February 19, 2008

Commercial Sales Market Share - Los Angeles Basin

Commercial Real Estate companies generally have two types of employees; self-employed brokers and everybody else.
I (and the rest of the research staff) fall into this later category. We are the liabilities, those that don’t generate direct revenue.

It is almost impossible to measure (in dollars) how my efforts translate into deals (sales and leases). For the real estate brokers, it is obvious and measureable. It can be measured in dollars since it is fairly easy to determine how much each broker brings in. It is also fairly easy to see how much each company makes and what its market share is.

Here are the 20 largest commercial real estate firms by sales for the Los Angeles Basin from 2003-2007. Sales information is a lot easier to obtain than lease information, so that information will be presented first.

There are many interesting things that can be explored here, such as a Gini Index to measure income disparity, the marginal impacts of brokers or even what factors are important in predicting how much a broker can sell in a given year. There is a wealth of information that can be explored, but first here is an inventory of where we start; firm rankings by sales volume for office and industrial real estate.






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