Procurement Market Intelligence Report
Commercial Real Estate Rental
Sourcing Guide & Market Intelligence
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Commercial Real Estate Rental Global Overview
Definition
Summary
A commercial real estate rental agreement is a contract between the owner of the commercial property (lessor) and the buyer (tenant). This contract, also referred to as a lease, requires buyers to pay a monthly rental fee in order to use the commercial property for their business.
This Report Includes:
- Office Space Rental
- Retail Space Rental
Not in this Report:
- Residential Land or Property Rental
- Industrial Facility Rental
Global Commercial Real Estate Rental Procurement Trends
Discover the top international trends affecting procurement in the global Commercial Real Estate Rental market.
Neutral
Inflation climbs above 3.0% for the first time in seven months
- In January, the Consumer Price Index (CPI) 12-month inflation rate, the most commonly used measure of inflation, rose by 0.1% to 3.0%, the highest it has been since June 2024.
- This uptick in inflation follows cuts to interest rates which may have added to consumer demand, fueling higher consumer prices.
- Additionally, the threat of impending tariff hikes has driven preemptive stockpiling by importers, adding to demand and price growth across a range of industries in the United States.
- While inflation is still low relative to previous years, sustained recent increases in inflation and the potential effects of tariffs, such as the recently implemented 10.0% on all Chinese goods, mean prices are still rising at a faster-than-normal pace.
Global Commercial Real Estate Rental Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 India | 710,560 |
| #2 Europe | 558,775 |
| #3 China | 402,390 |
Explore supplier concentration across the globe
We've uncovered the 11 top regions for global procurement, based on feedback from our most strategic clients. Access vendor counts for each unique region when you subscribe.
2
Geography Drilldown - US, Canada & Europe
Average Cost of Commercial Real Estate Rental
United States
2026 Market Pricing$4.50 to $XXX.XX
per square foot per monthCanada
Europe
Average Price
Prices in the Commercial Real Estate Rental market range from $4.50 to $XXX.XX, depending on Location, Real Estate Type, Building Grade Classification and Lease Duration. For example, lower prices are associated with Austin ($10.00 to $180 per square foot per month), whereas higher prices are associated with New York City ($20.00 to $350 per square foot per month).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Commercial Real Estate Rental Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Commercial Real Estate Rental market, prices in the US have grown 1.3% from 2022 to 2025. and +2.2% in Europe.
United States (2022-2025)
Canada (2017-2020)
Compound Annual Growth Rate
Europe (2022-2025)
Compound Annual Growth Rate
Wondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Commercial Real Estate Rental
Total cost of ownership is Medium in the Commercial Real Estate Rental market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Cancellations may raise the total cost of ownership unexpectedly.
Negotiated Before
Customization
Billed During
Maintenance
Utilities
Unforeseen
Cancellations
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to 0.0 in the United States. Buyer power is most positively impacted by Availability of Substitutes. It is most negatively impacted by Recent Price Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Canada
Europe
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Real Estate Sales & Brokerage Firms
- Property Management Companies
- Insurance Claims Adjusters
2nd
Tier Suppliers
- Commercial Real Estate
- Janitorial Services Providers
- Insurance Brokers & Agencies
Biggest Commercial Real Estate Rental Suppliers in the US by Revenue
The largest Commercial Real Estate Rental vendors by revenue in the US are Brookfield Property Partners L.P., Vornado Realty Trust and Kimco Realty Corp. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Cbre Group, Inc. | Global | DALLAS, TX | >10,000 | < 5 | ||||
| Jones Lang Lasalle Incorporated | Global | CHICAGO | >10,000 | < 5 | ||||
| Cushman & Wakefield Plc | Global | LONDON | >10,000 | < 5 | ||||
| Prologis, Inc. | Global | SAN FRANCISCO, CA | 1,001-10,000 | < 5 | ||||
| Simon Property Group, inc. | International | INDIANAPOLIS, IN | 1,001-10,000 | < 5 | ||||
| Boston Properties, Inc. | National | BOSTON, MA | 501-1,000 | < 5 | ||||
| Kimco Realty Corp | National | JERICHO | 501-1,000 | < 5 | ||||
| Vornado Realty Trust | Regional | NEW YORK, NY | 1,001-10,000 | < 5 | ||||
| Brookfield Property Partners L.P. | Global | CHICAGO, IL | <25 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Commercial Real Estate Rental market is 45.9% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is stagnating, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
High market profit underscores a low level of financial risk among commercial real estate lessors. Because lessors are in strong financial standing, buyers face minimal risk of service discontinuity.
Market share concentration is low as there are hundreds of thousands of commercial real estate lessors, which are distributed in line with the dissemination of the US population. Most lessors engage in considerable price-based competition to garner market share, so buyers have little difficulty leveraging this competition to achieve more favorable lease agreements and lower rental rates.
Supply chain risk is moderate in the commercial real estate rental market as commercial real estate is facing moderate levels of industry volatility.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises
Supplier Information
Boston Properties, Inc.
BXP, Inc. is a self-administered real estate investment trust that develops, owns, and manages primarily Class A office properties. Its portfolio consists of interests in commercial real estate properties, including office, retail, residential, and hotel properties, primarily in Boston, Los Angeles, New York,... Subscribe to learn more
Brookfield Property Partners L.P.
Brookfield Property Partners L.P. is a public company operating globally in the real estate and rental and leasing sector. The company's offerings include commercial real estate rental. Founded in 2013, the company is currently headquartered in Chicago, Illinois, United States of America. Subscribe to learn more
Cbre Group, Inc.
Cbre Group, Inc. is a public company operating globally in the construction, real estate and rental and leasing, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include facility maintenance & repair services,... Subscribe to learn more
Cushman & Wakefield Plc
Cushman & Wakefield Plc is a public company operating globally in the real estate and rental and leasing, professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include facility maintenance & repair services, industrial... Subscribe to learn more
Jones Lang Lasalle Incorporated
Jones Lang LaSalle Incorporated is a global commercial real estate and investment management company. It offers real estate services to real estate owners, occupiers, investors, and developers worldwide across property types, including, among others, critical environments and data centers, hotels and hospitality... Subscribe to learn more
Kimco Realty Corp
Kimco Realty Corporation is a real estate investment trust (REIT) that owns and operates open-air, grocery-anchored shopping centers and mixed-use properties primarily in the coastal markets and Sun Belt cities. Its tenant base includes grocery stores, home improvement centers, off-price retailers, discounters,... Subscribe to learn more
Prologis, Inc.
Prologis, Inc. is a real estate investment trust (REIT) that owns, invests in, manages, and develops logistics facilities globally. It generates revenues primarily through its rental operations. It also earns additional revenues by providing leasing, acquisition, construction management, development, and Subscribe to learn more
Simon Property Group, inc.
Simon Property Group, inc. is a public company operating internationally in the real estate and rental and leasing sector. The company's offerings include commercial real estate rental and property management services. Founded in 1993, the company is currently headquartered in INDIANAPOLIS, Indiana, United... Subscribe to learn more
SL Green Realty Corporation
SL Green Realty Corporation is a public company operating regionally in the real estate and rental and leasing sector. The company's offerings include commercial real estate rental. Founded in 1997, the company is currently headquartered in NEW YORK, New York, United States of America with an estimated 1137... Subscribe to learn more
Accelerate the vendor selection process
Get a clear picture of the competition in a market and discover which vendors are best-suited for your sourcing needs. Our supplier profiles include hard-to-find financial ranges for private companies, cover public company data and feature an interactive competitor matrix.
Procurement Management KPIs for the Commercial Real Estate Rental Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Customer Complaints and Gross Profit (and %). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Property Condition and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Customer Complaints |
|
Number of complaints Total number of reviews |
Service providers should have minimal complaints from both customers and internal staff. Customers' level of satisfaction can be used to determine whether customer improvements are required. |
| Gross Profit (and %) |
|
Total revenue Cost of goods sold (COGS) |
The gross profit can be used to determine the amount of profit resulting from the provision of goods and services. Buyers want to lease from lessors that are financially stable to mitigate risks of having to move out if a property is sold or bankrupt. |
|
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Contract
How long did the previous tenant rent the property for, and why did they leave?
Is there a high turnover rate for tenants of commercial properties in this area? If so, why?
Competition
How do your rentals differ from your competitors?
What types of concessions have you recently offered to tenants?
Cost Containment
Exactly what types of costs are included in the definition of CAM costs?
What specific costs am I responsible for? Am I responsible for any capital expenditures?
The ultimate prep for procurement negotations
View all 31 negotiation questions for this category when you subscribe.
Commercial Real Estate Rental RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should give an overview of their organizations, including their industry, products and services offered, locations and type of ownership.
Buyers should give a brief overview of their desired property, including minimum square footage, type (i.e. office, shopping center, etc.) and locations.
Statement Of Need
Buyers should give a more detailed description of their desired property, including its class (i.e. A, B or C), age and amenities (i.e. elevators, restaurants, etc.).
Buyers should outline their property's desired features (i.e. kitchens, HVAC, etc.).
Project Budget
Vendors should include the base rental rate for the property.
Vendors should include other costs for which buyers are responsible (i.e. utilities, parking, etc.).
The RFP process made easy
Find out how you can access RFP templates for 800+ procurement categories to start writing better, more consistent RFPs.
We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
