NAICS 531120 Quarterly Industry Report
Lessors of Nonresidential Buildings (except Miniwarehouses)
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 531120Sector: Real Estate and Rental and Leasing (53)Updated: Q1 2026
About This Report
This industry profile for Lessors of Nonresidential Buildings (NAICS 531120) draws on data from the U.S. Census Bureau[5], Bureau of Labor Statistics[6], and SBA size standards[7]. Published by Fair Market Value and updated quarterly, it provides commercial real estate investors, brokers, and lenders with classification guidance and market context. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the lessors of nonresidential buildings (except miniwarehouses) industry.
NAICS Sector
53
Real Estate and Rental and Leasing
Industry Definition & Overview
Lessors of Nonresidential Buildings (NAICS 531120) encompasses establishments that lease office buildings, shopping centers, industrial facilities, and retail properties to commercial tenants. Per Census Bureau data[5], the industry comprises approximately 31,300 firms employing 160,791 workers and generating $265 billion in annual revenue. Property types include professional and office buildings (36% of industry sales), commercial retail properties and shopping centers (36%), and manufacturing and industrial buildings (8%). Both owner-lessors and firms that rent real estate and subsequently sublease to others fall within this classification.
The commercial leasing sector remains highly fragmented, with the top 50 firms accounting for 45% of industry sales. Market leaders include Prologis, Simon Property Group, and Brookfield Property Partners. Office vacancy rates reached 20.7% in Q2 2025, reflecting persistent remote work adoption and cautious return-to-office trends. Between 2020 and 2024, the U.S. added more than 2.5 billion square feet of industrial property, contributing to elevated vacancy and suppressing rent growth across several markets.
Emerging opportunities include the AI-driven data center boom reshaping capital allocation within commercial real estate, with this sector now on track to surpass office construction. Profit margins vary by property type; net operating income (NOI) margins typically range from 60% to 80%, with operating expense ratios between 30% and 50%. Regional variations show stronger performance in coastal markets, while industrial oversupply challenges parts of the Southeast and Midwest. Manhattan and Miami maintain among the lowest office vacancy rates nationally.
What's Included in This Industry
- Office building ownership and leasing operations
- Industrial building and manufacturing facility leasing
- Shopping center and retail space leasing
- Full-service office space providers on lease or contract basis
- Commercial property subleasing arrangements
- Corporate office park operations
- Medical and healthcare office space leasing
- Mixed-use commercial property leasing
- Ground floor retail and mall space operations
- Warehouse facility leasing (non-self-storage)
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Real Estate and Rental and Leasing | 53 |
| Subsector | Real Estate | 531 |
| Industry Group | Lessors of Real Estate | 5311 |
| NAICS Industry | Lessors of Nonresidential Buildings (except Miniwarehouses) | 53112 |
| National Industry | Lessors of Nonresidential Buildings (except Miniwarehouses) | 531120 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 531110 | Lessors of Residential Buildings and Dwellings | Lessors of Residential Buildings and Dwellings lease apartment complexes and homes to residential tenants, using similar property management practices but serving different tenant types |
| 531130 | Lessors of Miniwarehouses and Self-Storage Units | Lessors of Miniwarehouses and Self-Storage Units operate specialized storage rental facilities, a distinct real estate niche from commercial building leasing |
| 531190 | Lessors of Other Real Estate Property | Lessors of Other Real Estate Property lease vacant land, manufactured home sites, and agricultural property, covering non-building real estate excluded from 531120 |
| 531311 | Residential Property Managers | Residential Property Managers operate and manage residential properties for others, providing a parallel management function to nonresidential building management |
| 531210 | Offices of Real Estate Agents and Brokers | Offices of Real Estate Agents and Brokers act as intermediaries in commercial leasing transactions, helping nonresidential lessors find tenants and negotiate lease terms |
| 531320 | Offices of Real Estate Appraisers | Offices of Real Estate Appraisers determine commercial property values, providing valuation services critical to property acquisition, financing, and tax assessment |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 14.1% | 4,858 |
| 2 | New York | 10.4% | 3,607 |
| 3 | Texas | 9.2% | 3,187 |
| 4 | Florida | 8.7% | 3,009 |
| 5 | Illinois | 3.1% | 1,069 |
| 6 | Pennsylvania | 3.0% | 1,055 |
| 7 | Georgia | 3.0% | 1,046 |
| 8 | New Jersey | 3.0% | 1,037 |
| 9 | Massachusetts | 2.5% | 861 |
| 10 | Ohio | 2.5% | 847 |
% Of Establishments
0%
14%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
48
Total SBA Loans
$10.0M
Total Loan Volume
$208K
Average Loan Size
13 yrs
Average Loan Term
8.60%
Average Interest Rate
64
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA size standard for NAICS 531120 is $34.0 million in gross receipts (SBA Size Standards[7]). An alternative size standard of $47.0 million applies to firms primarily leasing building space to the Federal Government. Nonresidential lessors may access SBA 7(a) and 504 loan programs[8] for property acquisition and capital improvements. The industry qualifies for small business contracting preferences when firms meet these revenue thresholds.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Banco Popular de Puerto Rico | 16 | $3.2M | $202K |
| 2 | Comerica Bank | 8 | $2.8M | $350K |
| 3 | The Community Bank | 8 | $2.0M | $247K |
| 4 | Provident Bank | 8 | $1.6M | $200K |
| 5 | TD Bank, National Association | 8 | $400K | $50K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 531120?
NAICS 531120 includes establishments that own and lease nonresidential buildings to commercial tenants. This covers office building operators, shopping center owners, industrial facility lessors, medical office space providers, and full-service office suite companies. Both direct owner-lessors and firms that sublease commercial space fall within this classification.
How is the nonresidential building leasing industry structured?
The industry comprises approximately 31,300 firms with 160,791 employees, generating $265 billion in annual revenue (Census Bureau[5]). Among those, the top 50 firms account for 45% of sales, leaving the market moderately fragmented. Major players include Prologis, Simon Property Group, and Brookfield Property Partners, alongside thousands of regional and local operators.
What is the SBA size standard for NAICS 531120?
The SBA size standard is $34.0 million in gross receipts, with an alternative of $47.0 million for firms primarily serving Federal Government leasing contracts (SBA Size Standards[7]). Most nonresidential lessors qualify as small businesses under these thresholds.
What NAICS codes are related to nonresidential building lessors?
Closely related codes include 531110 (Residential Building Lessors), 531130 (Self-Storage Lessors), 531190 (Other Real Estate Lessors), 531210 (Real Estate Agents and Brokers), 531311 (Residential Property Managers), and 531320 (Real Estate Appraisers). Each represents a different segment of the real estate ownership and services ecosystem.
Which industries work most closely with nonresidential building lessors?
Commercial builders (236220) provide new building inventory. Banks (522110) provide mortgage and construction financing. Property insurers (524126) provide essential coverage. CPA firms (541211) handle tax planning for commercial real estate. Facilities support services (561210) maintain building operations. HVAC contractors (238220) keep mechanical systems running for tenant comfort.
What activities are included in NAICS 531120?
Activities include owning and leasing office buildings, operating shopping centers and retail spaces, leasing industrial and manufacturing facilities, providing full-service office suites, subleasing commercial space, and operating medical office buildings. The classification covers the full range of commercial property types except miniwarehouses and self-storage units.
Can you get an SBA loan for this type of business?
SBA loans are available for qualifying nonresidential lessors meeting the $34.0 million size standard. SBA 7(a) and 504 loan programs[8] fund property acquisition, tenant improvements, and working capital. The 504 program is particularly relevant for commercial real estate, offering long-term fixed-rate financing for major asset purchases.
Which states have the highest concentration of commercial leasing activity?
New York, California, Texas, and Florida host the largest commercial leasing markets, driven by population density, corporate headquarters concentration, and economic activity. Per BLS data[6], Manhattan and Miami maintain among the lowest office vacancy rates, while markets like Seattle and Austin face higher vacancy from oversupply and remote work adoption.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]Census Bureau data census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA size standards sba.gov
- [8]SBA 7(a) and 504 loan programs sba.gov
Disclaimer
This publication has been prepared by Fair Market Value (“Fair Market Value”) for informational purposes only. It is provided on an “as-is” and “as available” basis. Fair Market Value makes no representations or warranties, express or implied, regarding the merchantability, fitness for a particular purpose, completeness, or accuracy of the data or information contained herein. This publication is not intended to be, and should not be construed as, professional financial, legal, tax, or investment advice. Users should consult with qualified professionals before making any financial or business decisions based on the information presented.
To the extent permitted by law, Fair Market Value disclaims all liability for loss or damage, direct and indirect, suffered or incurred by any person resulting from the use of, or reliance upon, the data in this publication.
Copyright © 2026 Fair Market Value. All rights reserved. All data, information, articles, graphs, and content contained in this publication are copyrighted works and Fair Market Value hereby reserves all rights. No part of this publication may be copied, reproduced, republished, uploaded to a third party, or distributed without the prior written permission of Fair Market Value.