--- title: "Commercial Real Estate Brokerage Industry: Companies, KPIs & Risks" description: "10 SEC filers are classified under the Standard Industrial Classification code that describes the commercial real estate brokerage industry." canonical: https://www.getswoopr.com/stocks/industries/real-estate/commercial-real-estate-brokerage/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Commercial Real Estate Brokerage Industry ## Direct Answer 10 SEC filers are classified under the Standard Industrial Classification code that describes the commercial real estate brokerage industry, and their latest annual reports show $47.6 billion of combined revenue and a median operating margin of -0.7%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Commercial real estate brokerages earn commissions on sales and leasing of office, retail, industrial and multifamily properties and fees from property and loan services. Revenue follows transaction volumes, which swing with rates and credit availability. The first numbers to compare across companies here are capital markets and leasing revenue, transaction volumes and recurring property management share. ## Key Industry Metrics - **Capital markets and leasing revenue**: Commissions from property sales, financing and tenant leasing. These lines are cyclical and move with deal activity, so they set the pace of total revenue. - **Transaction volumes**: The number and dollar value of deals closed. Volumes swing with interest rates and credit, and a rebound often leads earnings recovery. - **Recurring property management share**: The portion of revenue from management and service contracts. A higher share steadies earnings through slow deal cycles. - **Broker headcount and productivity**: The number of brokers and revenue per broker. Hiring supports future capacity, but rising pay and slower deals can pull productivity down. - **Operating margin**: Profit after commissions paid to brokers and overhead, as a share of revenue. It expands with higher volumes since many costs are fixed, and shrinks in slowdowns. ## Primary Macro Drivers - **Interest rates and credit availability**: Deals depend on cheap and available financing, so rate changes and lender appetite move capital markets revenue and transaction volumes. - **Property values and sentiment**: When values and sentiment are rising buyers and sellers trade more, so transaction and leasing revenue follow property values. - **Corporate leasing decisions**: Companies decide to expand, move or shrink space, so leasing revenue follows corporate hiring and office strategies. - **Investor capital flows**: Inflows to property by funds and investors decide how many deals close, shown in capital markets revenue and volumes. ## Major Risks - **Transaction downturns**: Commissions are earned on closings, so a freeze in deals cuts revenue quickly while costs remain, shown in operating margin. - **Broker compensation costs**: Brokers are paid a large share of each commission, so a slowdown can leave costs high against revenue, shown in operating margin. - **Leverage from acquisitions**: Acquisitions funded with debt raise interest cost, so watch leverage and interest coverage during slow periods. - **Regulatory and commission changes**: Rules on fees or conduct can change how commissions are paid, so read regulatory and legal notes. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Cyclical | | Capital Intensity | Low | | Regulatory Intensity | Medium | | Industry Maturity | Mature | | Geographic Importance | U.S. / Global | ## Commercial Real Estate Brokerage Filers in the SEC Record 10 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 6531. Their latest fiscal years end in 2025, and together they reported $47.6 billion of revenue. Median revenue growth over the prior year was 14.1%. Median operating margin was -0.7% and median net margin -0.7%. Median total liabilities were 58% of total assets, and 4 of 10 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Jones Lang Lasalle Inc](https://www.getswoopr.com/stocks/companies/jones-lang-lasalle-incorporated/) | $26.1 billion | 11.4% | 4.2% | 3.0% | FY 2025 | | [Compass, Inc.](https://www.getswoopr.com/stocks/companies/compass-inc/) | $7.0 billion | 23.7% | -0.9% | -0.8% | FY 2025 | | [Agnt, Inc.](https://www.getswoopr.com/stocks/companies/agnt-inc/) | $4.8 billion | 4.5% | -0.4% | -0.5% | FY 2025 | | [Opendoor Technologies Inc.](https://www.getswoopr.com/stocks/companies/opendoor-technologies-inc/) | $4.4 billion | -15.2% | -6.6% | -29.7% | FY 2025 | | [Newmark Group, Inc.](https://www.getswoopr.com/stocks/companies/newmark-group-inc/) | $3.3 billion | 20.3% | 7.1% | 3.8% | FY 2025 | | [Douglas Elliman Inc.](https://www.getswoopr.com/stocks/companies/douglas-elliman-inc/) | $1.0 billion | 3.8% | 4.4% | 1.5% | FY 2025 | | [Offerpad Solutions Inc.](https://www.getswoopr.com/stocks/companies/offerpad-solutions-inc/) | $568 million | -38.2% | -5.9% | -8.2% | FY 2025 | | [Fathom Holdings Inc.](https://www.getswoopr.com/stocks/companies/fathom-holdings-inc/) | $420 million | 25.4% | -3.7% | -4.8% | FY 2025 | The 8 largest of 10 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Commercial Real Estate Brokerage guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company. ### More in Real Estate - [Real Estate sector overview](https://www.getswoopr.com/stocks/industries/real-estate/) - [Commercial Real Estate Developers](https://www.getswoopr.com/stocks/industries/real-estate/commercial-real-estate-developers/) - [Cell Tower REITs](https://www.getswoopr.com/stocks/industries/real-estate/cell-tower-reits/) - [Data Center REITs](https://www.getswoopr.com/stocks/industries/real-estate/data-center-reits/) - [Apartment REITs](https://www.getswoopr.com/stocks/industries/real-estate/apartment-reits/) - [Diversified REITs](https://www.getswoopr.com/stocks/industries/real-estate/diversified-reits/) - [Warehouse REITs](https://www.getswoopr.com/stocks/industries/real-estate/warehouse-reits/) - [Equity Real Estate Investment Trusts](https://www.getswoopr.com/stocks/industries/real-estate/equity-real-estate-investment-trusts/) - [Title & Escrow Services](https://www.getswoopr.com/stocks/industries/real-estate/title-and-escrow-services/) ### Put it to work - [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/) - [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/) - [Company research](https://www.getswoopr.com/stocks/companies/) - [All industries](https://www.getswoopr.com/stocks/industries/) ## Frequently Asked Questions What are the main KPIs for the Commercial Real Estate Brokerage industry? Key performance indicators for the Commercial Real Estate Brokerage industry include: Capital markets and leasing revenue, Transaction volumes, Recurring property management share, Broker headcount and productivity, Operating margin. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Commercial Real Estate Brokerage industry? The Commercial Real Estate Brokerage industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing. What are the biggest risks in the Commercial Real Estate Brokerage industry? The primary risks for Commercial Real Estate Brokerage companies include: Transaction downturns, Broker compensation costs, Leverage from acquisitions, Regulatory and commission changes. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).