The real estate industry is among the most popular and highest grossing industries, bringing in billions of dollars each year. Simply put, real estate involves buying and selling, leasing, or renting land to others. According to Statista, the real estate franchising industry is currently putting out about $53 billion, which is the highest output real estate has delivered in the last ten years.
The real estate franchising industry is currently putting out about $53 billion in revenue, which is the highest output real estate has delivered in the last ten years.
Industry sectors include leasing, management, and brokerage.
The real estate industry can be broken down into three different sectors
Leasing agents frequently work with a management company and are tasked with finding tenants for properties. Companies that employ leasing agents are responsible for up keeping the buildings or properties they own, whether it be directly or through the use of a third party such as a super. It is the responsibility of the management company to ensure that buildings are fully occupied with payments submitted in a timely fashion.
Brokers work to ensure a timely and mutually beneficial exchange between those looking to buy and those looking to sell properties. This task involves facilitating price agreements and managing the money given at the closing. Typically the broker is paid a commission for their work, which is often split between the brokers in the arrangement.
Examples of real estate franchises include:
- Century 21 Real Estate
- Coldwell Banker Real Estate
- Keller Williams
Industry depends on outside economic factors.
The success of the real estate industry depends highly on outside economic conditions. The real estate market rises and falls according to the current economic state. More simply, if the economy is in bad condition, people are less likely to buy or invest in new real estate ventures.
Furthermore, depending on the type of real estate, the market changes according to the amount of other properties. If there is a large amount of new properties build in a certain area, the demand for one specific building or property falls. This also forces the price to drop in order to stay competitive.
Is the industry right for you?
The real estate industry can be an extremely profitable venture. The industry produces roughly $25 billion dollars in revenue each year, according to Ibis World. Not to mention, the real estate unemployment rate has dropped steadily over the past eight years, according to the National Association of Realtors, and is currently at only 3.9 percent. Since 2010, the industry has gained about 18 million jobs and it is projected to continue to rise.
Given the current success of the industry and anticipated growth, real estate may be a good fit for you. Not only is it a profitable option, but it gives you the opportunity to assist people in some of the largest decisions in their lives. With a typically flexible working schedule, working with or investing in a real estate franchise has a lot of potential for success.