SIOR Study: Office, Industrial Leases Total $185-BIL

WASHINGTON, DC-A new study funded by the Society of Industrial and Office Realtors aims to track the impact of technology on the industry and what it will mean to commercial real estate years from now. The first phase of the study, which is being released in three phases, shows the depth of the commercial market with some staggering statistics, and suggests that those on the outside of the industry may be itching to get in on the action.

Some key dollar-figure findings released in the first phase: Office and industrial leases total $185 billion a year and brokerage commissions equal more than $10 billion annually. Perhaps more interesting is the sheer mass of office and industrial space–across the U.S., an estimated 7.4 billion sf generates annual lease revenues of $115 billion, and an estimated 22.9 billion sf of industrial space brings in yearly lease revenues of $69.9 billion. The “present value” of brokerage industry profits for office and industrial profits is more than $5 billion, according to study findings.

“Most brokers have a good understanding of what their firm does, what the square footage in their market is,” says Steven H. Podolsky, SIOR, principal of Chicago-based Podolsky Northstar Realty Partners and president of the SIOR educational foundation. “But I think some of these figures will make even the most experienced brokers in the largest markets stand back and say, ‘Whoa.’”