Industries in the Real Estate subsector group establishments that are primarily engaged in renting or leasing real estate to others; managing real estate for others; selling, buying, or renting real estate for others; and providing other real estate related services, such as appraisal services.
Establishments primarily engaged in subdividing and developing unimproved real estate and constructing buildings for sale are classified in Subsector 236, Construction of Buildings. Establishments primarily engaged in subdividing and improving raw land for subsequent sale to builders are classified in Subsector 237, Heavy and Civil Engineering Construction.
Real Estate Investment Trusts (REITS) are classified in Subsector 525, Funds, Trusts, and Other Financial Vehicles, because they are considered investment vehicles.
The real estate industry, under NAICS 531, is experiencing several significant qualitative trends that are shaping its current landscape and future trajectory. One of the dominant trends is the increasing integration of technology in property management and transactions. Proptech innovations like virtual reality tours, blockchain for transparent transactions, and AI-driven analytics for property valuation are transforming how real estate is marketed and sold. This trend is expected to grow as technology continues to advance, making real estate operations more efficient and customer-oriented.
Sustainability is another critical trend. There is a growing demand for eco-friendly buildings and energy-efficient properties as consumers become more environment-conscious. This demand is influencing real estate developers to incorporate green building practices and materials into new projects, and retrofit older properties to improve their sustainability profiles. Forecasts indicate that sustainability will be an increasingly influential factor in property valuation and investment decisions.
The rise of remote work has also impacted the commercial real estate sector. Companies are re-evaluating office space needs, with some reducing their footprint to cut costs, while others are redesigning spaces to accommodate hybrid work models. This shift is anticipated to result in a long-term transformation of office spaces, with a focus on flexibility, collaboration areas, and enhanced technological infrastructure.
Demographic shifts, especially with the aging population, are also influential. There is a growing need for age-appropriate housing and amenities as baby boomers downsize or seek senior living accommodations. At the same time, younger generations are becoming pivotal in driving demand for urban living spaces, impacting real estate development priorities in urban areas. These demographic trends are forecasted to shape housing demand and community planning significantly.
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