11 Largest Property Management Companies in the US

Published on January 27, 2023 at 10:42 am by Aima Zaheer in Lists, News

In this article, we will take a look at the 11 largest property management companies in the US.

According to a survey conducted by Buildium, 63% of owners of rental properties were working with a property manager for smooth operations and proper care of their respective properties during 2021 and 2022. The proportion of owners opting for a property manager has increased from 55% in 2019.

According to experts, certain property management companies anticipate that in the next two years, they will observe very strong growth in their portfolios. The revenue growth expectations are at their highest point since 2018. Such bullish sentiments have not been seen in the property management market since 2017. A survey conducted by Propertyware in 2023 revealed that 92% of property managers expect the property management industry to either grow significantly or slightly over the next two years. Meanwhile, 6% forecast the industry size to remain the same, and only 2% forecast the property management industry to shrink.

Changing Trends

Property managers have ranked growth, efficiency, and profitability as the top three priorities for this year as opposed to growth, residents, and owners in 2022. Residents and owners were among the top three priorities in 2022 because of the challenges related to the COVID-19 pandemic. The shift of priority towards efficiency and profitability reflects that property management companies are geared up to restore the health of their respective businesses following the challenges of the last two years. Property management companies still value the owners and residents, and they are committed to providing the best service to them. However, they will now shift back their focus towards balancing concerns related to owners and residents with issues related to growth and operations. Rental property ownership remains complicated and expensive, with higher legal risks as opposed to the past. Thus, the involvement of a property management firm lowers the stress of the property owner even though it lowers the owner’s returns on the property due to higher costs. Property managers are critical because one-third of the property owners rely on the rental income to make the mortgage payment. Property managers ensure that the properties are rented at an attractive price without any delay in payments.

Growth Outlook

The level of competition has increased significantly in the property management market because of the increase in demand for rental spaces. Property management companies have expanded their horizons into widely known markets like the Sun Belt to increase their footprint in popular urban areas. Some property management companies opt for organic expansion through their network, while some opt for inorganic growth by buying local property management firms. These entities understand the local dynamics, providing a competitive edge. Furthermore, small local property management companies do not have enough resources to compete with bigger entities, justifying a takeover.

According to Fortune Business Insights, the size of the property management market is expected to increase from $19.33 billion in 2022 to $37.25 billion by 2029, reflecting a compound annual growth rate (CAGR) of 9.8%. Market expansion is being driven by the rising demand for management software to suit consumers’ altering real estate tastes, as well as the expanding demand for better client management. The property management industry is experiencing the positive impact of technology. As per Asmag, a B2B and media site for global security players, 86% of Gen Z or millennials are willing to pay higher rent for a ‘smart’ apartment or house. Jones Lang LaSalle Inc (NYSE:JLL), Colliers International Group Inc (NASDAQ:CIGI), and CBRE Group Inc (NYSE:CBRE) are some of the largest property management companies in the US that are capitalizing on these changing trends to expand their client base.

Photo by Owen Lystrup on Unsplash

Our Methodology

We have ranked the 11 largest property management companies in the US in ascending order of the number of properties managed by them at the end of 2022. We used National Multifamily Housing Council Database for those metrics. These companies are known for providing an extensive range of services with a strong client management reputation. We have looked at the assets under management for the leading companies where data regarding the number of properties managed was not available.

Largest Property Management Companies in the US

11. BH

Number of Units Managed: 106,353

Founded in 1993, BH offers a diverse range of property management, construction, equities, and architecture and design services.

In addition to operating over 106,000 multifamily units, the company also has 8,080 student housing units and 483 single-family homes in its portfolio as of 2023. BH has operations all across the United States, including portions of the Mid-Atlantic, Midwest, Texas, Florida, and West Coast. BH claims it can achieve scale-based operating efficiencies and provide better value with a varied portfolio dispersed across regions. To identify and evaluate investment prospects, the company leverages in-depth market-level data from its own properties, including past rent growth and income. Furthermore, with the help of its extensive network of water and energy-saving techniques from the Green Initiative, BH looks for chances to make communities economically and environmentally viable.

10. Apartment Management Consultants, LLC (AMC)

Number of Units Managed: 132,364

Apartment Management Consultants, LLC (AMC) is a Salt Lake City, Utah-based company that manages properties across 30 states in the US.

The entity provides management services for apartment complexes and other residential properties. This can include tasks such as managing tenant relations, collecting rent, maintaining the property, and handling legal compliance. Apartment Management Consultants, LLC also provides additional services such as leasing, marketing, and financial reporting. The firm is focused on generating the highest possible return for the owners of the properties. The company has 3,162 employees and provides residence to 248,844 people across the US through 793 properties as of 2023. Apartment Management Consultants, LLC claims that 94.76% of its portfolio is occupied as of 2023.

9. FPI Management

Number of Units Managed: 155,000

FPI Management is a privately-held Folsom, California-based property management company founded in 1968. The company employs 3,000 people across the US and provides services across 18 states.

FPI Management has a diversified client list that comprises city, county, and state agencies, financial institutions, institutional investors, international real estate investment companies, multifamily development builders, and private investors. The company claims that 68%, or 92,622, of its units are being offered at market rate as of 2023. Meanwhile, the remaining 32% of its units are offered at affordable rates.

8. Asset Living

Number of Units Managed: 159,352

Asset Living is known for providing a full range of services that position properties for success by fusing more than 36 years of experience and cutting-edge technology. The company operates in 40 states and has 13 corporate offices.

By acquiring Shelton Residential in 2020, Asset Living increased its multifamily presence in the Southwest. Later in the year, the firm also purchased Alpha Barnes Real Estate Services, enhancing its portfolio of cost-effective property management. In 2021, Asset Living expanded its reach into the Southwest and Southeast by acquiring City Gate Property Group, JMGRealty, and Echelon Property Group. The company is currently led by Ryan McGrath as its CEO and President.

7. Pinnacle Property Management Services, LLC

Number of Units Managed: 169,000

Pinnacle Property Management Services, LLC is a subsidiary of Cushman & Wakefield. The company has a headcount of 4,500 employees, 839 residential properties, and two million sqft of commercial space in its portfolio. The property management company, founded in 1980, has a presence in 32 states as of 2023.

Cushman & Wakefield completed the acquisition of the Dallas, Texas-based Pinnacle in March 2020. Pinnacle Property Management Services, LLC is focused on providing long-term profitability, full transparency, and monthly accountability to the property owners. Some of the tasks that Pinnacle Property Management Services, LLC accomplishes include managing and maintaining rental properties, collecting rent from tenants, and handling tenant complaints and issues. The company also handles tasks related to advertising and showing rental properties, screening potential tenants, and handling evictions.

6. Cushman & Wakefield PLC (NYSE:CWK)

Number of Units Managed: 172,145

Cushman & Wakefield PLC (NYSE:CWK) is a Chicago, Illinois-based real estate services company. The company is one of the biggest commercial real estate services corporations in the world.

With a team of 50,000 members, Cushman & Wakefield PLC (NYSE:CWK) posted revenue of $9.4 billion in 2021. Cushman & Wakefield PLC (NYSE:CWK) claims to have a portfolio of 700 million sqft across the Americas as of 2022. The company provides residential property management, property marketing, accounting, financial reporting, construction management and maintenance, technology, and energy sustainability services to its clients.

Here’s what Vulcan Value Partners said about Cushman & Wakefield PLC (NYSE:CWK) in its Q3 2022 investor letter:

“Cushman & Wakefield plc (NYSE:CWK) had good operating results in the second quarter but was a material detractor. Company management did not increase their guidance for the year, suggesting the possibility of a weak second half, and the market may be worried about that possibility. We expect economic conditions to be more challenging as we enter 2023, and we are taking a cautious approach to our valuation. The company recently authorized a share buyback for 10% of its outstanding shares, which we think is both a positive sign and an intelligent capital allocation decision. Overall, we think the company is performing well, and its results are in line with our expectations.”

In addition to Cushman & Wakefield PLC (NYSE:CWK), Jones Lang LaSalle Inc (NYSE:JLL), Colliers International Group Inc (NASDAQ:CIGI), and CBRE Group Inc (NYSE:CBRE) are also some of the largest property management companies in the US.

5. Lincoln Property Co

Number of Units Managed: 210,086

Lincoln Property Co is a Dallas, Texas-based property management company founded in 1965 by Mark Pogue. It is a subsidiary of Cadillac Fairview, an international property manager wholly owned by the Ontario Teacher’s Pension Plan, and has an asset under management (AUM) of $36 billion globally.

Lincoln Property Co is a renowned developer and property manager of high-scale residential communities. The company has expanded in the commercial real estate segment as well. Lincoln Property Co has been ranked the second biggest multifamily property manager for eight consecutive years by National Multifamily Housing Council (NMHC). On January 10, Lincoln Property Co received the complete building permit for a residential property development in the Uptown neighborhood of Chicago, Illinois.

4. Greystar Real Estate Partners

Number of Units Managed: 698,257

Greystar Real Estate Partners is a Charleston, South Carolina-based, fully integrated property management company founded by Bob Faith in 1993.

Greystar Real Estate Partners is a leader in the property management industry and has an AUM of $53.4 billion and nearly $22.6 billion of assets under development as of 2023. Overall, the company operates $201 billion worth of real estate across 221 markets around the world. Greystar Real Estate Partners has been ranked the biggest apartment manager by the NMHC for the last 12 consecutive years. Furthermore, Greystar Real Estate Partners were also ranked the biggest developer by the NMHC for the second consecutive year in 2022.

3. Jones Lang LaSalle Inc (NYSE:JLL)

Number of Units Managed: N/A

Assets Under Management: $76.6 billion

Jones Lang LaSalle Inc (NYSE:JLL) is a global commercial real estate services firm with offices in 80 countries.

Jones Lang LaSalle Inc’s (NYSE:JLL) 2021 results demonstrated significant global expansion. The total revenue increased by 15% on a yearly basis to $19.4 billion, and the fee revenue rose to $8.1 billion, reflecting an increase of 31%. In comparison to 2020, the company posted an adjusted EBITDA of $1.5 billion, an increase of 73%. Furthermore, the diluted adjusted earnings per share increased by more than twofold to $19.47. As of December 31, 2021, Jones Lang LaSalle Inc (NYSE:JLL) reported assets under management worth $76.6 billion.

Here’s what Baron Funds said about Jones Lang LaSalle Inc (NYSE:JLL) in its Q3 2022 investor letter:

“Jones Lang LaSalle Incorporated (NYSE:JLL) is one of the leading commercial real estate services firms in the world with scale, product breadth, and leadership positions across its diversified real estate business segments.

It is currently valued at only 8 times estimated 2023 earnings per share versus a long-term average of 14 times earnings per share.

CBRE and Jones Lang LaSalle have scale, product breadth, and leadership positions across their diversified real estate business segments. They continue to gain market share and are well positioned to capitalize on ample attractive acquisition opportunities in the years ahead given strong and liquid balance sheets. Though we acknowledge that growth in certain segments of their businesses has slowed and is likely to remain pressured in the months ahead due to the global economic slowdown and higher interest rates, we believe both are attractively valued and present compelling return potential in the next few years.”

2. Colliers International Group Inc (NASDAQ:CIGI)

Number of Units Managed: N/A

Assets Under Management: $92 billion

With over 18,000 professionals spread across more than 400 locations in 63 countries, Colliers International Group Inc (NASDAQ:CIGI) is a global professional service and investment management organization.

The company’s EMEA Property Management team oversees more than 20 million square meters of real estate in 12 countries, covering all major asset classes. Colliers International Group Inc (NASDAQ:CIGI) has managed to generate compound yearly investment returns of about 20% for over 27 years. As of 2023, the company has assets under management of $92 billion and generates around $4.6 billion in annual revenue. The U.S. is the largest source of revenue for Colliers International Group Inc (NASDAQ:CIGI) out of the 63 nations it operates in.

Here’s what Argosy Investors said about Colliers International Group Inc (NASDAQ:CIGI) in its Q1 2022 investor letter:

“CIGI is a commercial real estate broker, and CRE brokers have typically seen commissions evaporate during economic downturns, as sales plummet. With rising interest rates, we expect owners of assets will be less likely to unload their holdings, while there could be some pressure on real estate valuations over time if interest rates remain higher than the historic lows they reached during the recession. All of this may pressure transaction volumes in the short-term and transaction values (and thus commissions) in the next few years. CIGI is transitioning away from the commission-driven CRE model towards a higher recurring revenue focus, but they are still not yet far enough beyond that foundation to avoid a significant hit to their earnings.”

1. CBRE Group Inc (NYSE:CBRE)

Number of Units Managed: N/A

Assets Under Management: $143.9 billion

CBRE Group Inc (NYSE:CBRE) is considered to be one of the world’s leading real estate services and investment companies.

The company aims to provide sustainable investment solutions across real asset classes, regions, risk levels, and execution styles. CBR Group Inc (NYSE:CBRE) is in charge of managing more than $143.9 billion in assets, making it one of the top real assets investment managers in the world. For the year ended September 30, 2022, CBRE Group Inc’s (NYSE:CBRE) revenue was $31.184 billion, reflecting an increase of 19.45% from the previous year. The company operates over 30 offices across the world and boasts a team of more than 1000 professionals.

Third Avenue Management shared its outlook on CBRE Group Inc (NYSE:CBRE) in its Q4 2022 investor letter. Here’s what the firm said:

“The Fund also added to its existing positions in the common stock of CBRE Group, Inc. (NYSE:CBRE) and Savills plc—both “net cash” real estate brokerage and services firms that have “outsider” attributes in their own right having reshaped their business mix in recent years with (i) the addition of significant recurring revenues through property management and investment management mandates and (ii) expanded expertise to capitalize on the rapidly changing dynamics in the office markets by providing advisory, appraisal, sustainability, and flexible office solutions for tenants, owners, and lenders.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also take a peek at the 21 Biggest Airports in the World and 15 Countries Where Bitcoin is Legal or Illegal.