Analysis – Commercial leasing in USA

Median EBITDA Multiple, according to DealStats

 

In the real estate, rental, and leasing sector, the median EBITDA multiple over the past 12 months is 4.4x (Q2 2025).
In the commercial leasing sector specifically, the average EBITDA multiple is significantly higher than 4.4x, based on a competitor analysis on DealStats.

What is EBITDA?

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) = Earnings before interest on long-term and short-term debt, before taxes, and before depreciation/amortization.

Competitors and Number of Companies in the U.S. in 2025 (according to IbisWorld Inc.)

Market share of the top 3 players in this industry in Canada:

  1. Brookfield Property – $8.5 billion in revenue

  2. Prologis, Inc. – $8.5 billion in revenue

  3. Simon Property Group, Inc. – $4.1 billion in revenue
    Total industry revenue: approximately $259 billion

 

The industry is highly fragmented with over 367,000 companies, the majority being small operators or non-employers (local agents or firms).

 

Revenue breakdown by service segment:

  1. Office space – 38.3%

  2. Retail – 31.2%

  3. Industrial space – 21%

  4. Other (data centers, mixed-use, etc.) – 9.5%

Key Success Factors in This Industry (according to IbisWorld Inc.)

Strategic geographic positioning: Owning well-located properties to maximize demand.
Diversified portfolio: Offering various types of properties and serving multiple client sectors to mitigate risk.
Efficient property management: Keeping properties in good condition to attract and retain tenants.
Financial strength: Having the ability to withstand economic cycles and interest rate fluctuations.
Strong tenant relationships: Retaining existing clients to ensure high occupancy rates.

Industry Trends (according to IbisWorld Inc.)

• The pandemic caused an increase in office vacancy rates, especially in major cities (San Francisco, New York, Chicago).


• The rise of remote work continues to impact long-term office demand.


• In contrast, the industrial segment (warehouses, logistics) has experienced strong growth, driven by e-commerce.


• The retail segment remains fragile, affected by the rise of online shopping and the closure of many secondary malls.

Key Drivers of Industry Growth Through 2028 (according to IbisWorld Inc.)

Post-pandemic recovery of demand in commercial real estate, especially for warehouses, industrial parks, and certain office spaces.
Continued growth of e-commerce: increasing demand for logistics and warehouse space.
High interest rates: may limit new investments but could favor leasing over buying.
Economic pressures (inflation, central bank rates): will influence business strategies around acquisitions and leasing.
Technological transitions: adoption of digital property management platforms and automation of operations.

Sources

IBISWORLD:
“Commercial Leasing” – NAICS (53112 US)

BVR:
DealStats – NAICS (53112) – Revenue between $0 and $100,000,000
DealStats Value Index Q2 2025


Important Note

Please note that the information provided here is meant as a general guideline only (“rule of thumb”) and that many positive and negative factors can influence the results mentioned above. It is essential to understand that every business is unique. Furthermore, the sale price largely depends on the number of interested buyers, their potential synergies with the target company, and the return they are seeking.


Disclaimer

Pntt makes no representations to any party regarding the completeness or accuracy of the data or information contained in this document. pntt accepts no responsibility and disclaims all liability for any loss or damage suffered or incurred by any person as a result of using the information contained in this document.


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