NAICS 53 - Real Estate and Rental and Leasing
The Sector as a Whole
The Real Estate and Rental and Leasing sector comprises establishments primarily engaged in renting, leasing, or otherwise allowing the use of tangible or intangible assets, and establishments providing related services. The major portion of this sector comprises establishments that rent, lease, or otherwise allow the use of their own assets by others. The assets may be tangible, as is the case of real estate and equipment, or intangible, as is the case with patents and trademarks.
This sector also includes establishments primarily engaged in managing real estate for others, selling, renting and/or buying real estate for others, and appraising real estate. These activities are closely related to this sector's main activity, and it was felt that from a production basis they would best be included here. In addition, a substantial proportion of property management is self-performed by lessors.
The main components of this sector are the real estate lessors industries; equipment lessors industries (including motor vehicles, computers, and consumer goods); and lessors of nonfinancial intangible assets (except copyrighted works).
Excluded from this sector are real estate investment trusts (REITS) and establishments primarily engaged in renting or leasing equipment with operators. REITS are classified in Subsector 525, Funds, Trusts, and Other Financial Vehicles, because they are considered investment vehicles. Establishments renting or leasing equipment with operators are classified in various subsectors of NAICS depending on the nature of the services provided (e.g., transportation, construction, agriculture). These activities are excluded from this sector because the client is paying for the expertise and knowledge of the equipment operator, in addition to the rental of the equipment. In many cases, such as the rental of heavy construction equipment, the operator is essential to operate the equipment.
Industry trends:
The real estate and rental and leasing sector (NAICS 53) has seen several qualitative trends shaping its landscape. One significant trend is the increased adoption of technology. Proptech innovations, such as virtual tours, smart home integration, and blockchain for property transactions, are becoming standard tools for enhancing customer experiences and operational efficiency. The industry has also observed a shift towards sustainable and energy-efficient buildings, driven by consumer demand and regulatory pressures.
Another notable trend is the evolving work environment due to the rise of remote work. This shift has affected commercial real estate, with decreased demand for traditional office spaces and increased interest in flexible office solutions and coworking spaces. The residential market is witnessing a growing preference for suburban and rural properties as individuals seek larger living spaces and greener environments.
Forecasts for the near future suggest continued growth in the rental market due to affordability issues in home buying. The sector is also expected to embrace more digital transaction processes and data analytics for better decision-making. Additionally, the focus on sustainability is predicted to intensify, influencing both new construction and property management practices.
Overall, the NAICS 53 sector is poised for transformation, heavily influenced by digital advancements, changing work habits, and increasing environmental consciousness. Stakeholders are encouraged to adapt to these shifts to stay competitive in the evolving market.
This industry is comprised of:
This report includes the ability to segment your Industry by:
- Region
- Employees
- Net Sales
- Company Age
- Total Assets
- Ownership Type
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