Sector Spotlight: Property Management

The global real estate industry is booming amid ongoing population growth and increasing urbanization. As a result, the property management sector is seeing explosive growth — and creating a wealth of opportunities for private market dealmakers.

Here’s what you need to know.

Opportunities in the Property Management Space

Source: Grata

Property management is the second largest segment of the real estate services industry, accounting for 27.7% of the space. The sector encompasses a broad range of services — window cleaning, elevator maintenance, security, landscaping, HVAC repair, fire safety, and restoration — for residential, commercial, and public buildings.

The vast majority of property management companies are privately owned. Currently, there are around 16,000 companies that are ripe for acquisition.

Property Management Financial Performance

Source: Grata

The public property management sector is seeing an explosive average growth rate of 67%, nearly 7x the industry average. In the private sphere, property management companies see around 2.5x more revenue than the industry average.

Housing costs have made homeownership inaccessible for many, which is driving up the number of long-term renters.  

Short-term rentals are also booming thanks to platforms like Airbnb and VRBO, necessitating management services to handle bookings and maintenance. Additionally, the commercial and industrial property sectors are expanding, creating the need for more management services. For example, the ongoing growth of e-commerce is driving demand for professional management of large logistics and warehouse facilities.

Who’s Winning in Property Management

The Grata team has curated a list of top private companies in the property management sector. These companies have been selected based on their revenue and employee headcount compared to the industry averages.

Source: Grata

Take Action with Grata

If you’re a private market dealmaker looking to make moves in the property management space, Grata can help you put the insights in this article into action.

From in-depth market research to sourcing to pipeline management and relationship nurturing, Grata’s end-to-end dealmaking platform streamlines your workflows so that you can close more deals.

Schedule a demo today to get started.