Property Management: Expansive, Diverse, and Growing

The property management market isn’t necessarily the first sector on one’s mind when thinking about prominent client grantor sectors for the accounts receivable management (ARM) industry. Many ARM professionals, financial buyers, and other interested parties often point toward healthcare or financial services as primary growth sectors for ARM; however, property management should not be overlooked. This is especially true for the thousands of mid-sized and small mom-and-pop businesses in this marketplace.

Although this sector saw moderate annual revenue fluctuation over time, especially from 2002 until 2011, it has grown considerably since the end of the Great Recession. The fluctuation may have been driven by the U.S.’s booming economy and housing market during the mid-2000s, which ultimately revealed itself to be a bubble, leading to the worst recession in 70 years. Property management sector revenue fell throughout the Great Recession, creating a trough from which revenue has since rebounded.

Kaulkin Ginsberg incorporated various public and third-party data to comprehensively analyze the property management market, ultimately creating an exhaustive report tailored specifically for the ARM industry. Among other sections, the report details market sizing, loan segment analysis, and economic drivers, on top of notable case studies of major property management firms like CBRE or Jones Lang LaSalle.

Arguably the most important aspect of the property management market is its highly fragmented, regionalized, and small-business-focused nature. There are more than 120,000 distinct property management firms in the U.S. as of 2016, ranging from residential real estate lessors to commercial property managers. Among these more than 120,000 firms, Kaulkin Ginsberg anticipated revenues to have to have grown by 2.9% annually, on average, from $196.7 billion in 2000 to roughly $326.6 billion by 2018, as shown in the illustration below. Although this sector hasn’t grown as quickly as other sectors that Kaulkin Ginsberg examined (e.g., healthcare or student loans), its unique characteristics complement those of the ARM industry.

The property management market should present potentially lucrative opportunities for the ARM industry; however, its appeal to specific ARM firms may differ drastically depending on the company’s size, focus, and risk-tolerance. Nonetheless, the vast diversification opportunities within the property management sector, through its highly regionalized and small business nature, may be worth exploring for interested ARM companies.

To purchase the full report, or inquire about additional market sectors – including cable & telecommunications, commercial banking, credit unions, Federal Government, healthcare, student loans, and utilities, please reach out to Kaulkin Ginsberg’s market research team at hq@kaulkin.com.

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