Commercial Real Estate Market Size (2024 - 2029)

The commercial real estate market is experiencing a dynamic shift in its market size, influenced by various factors such as urbanization, digitalization, and foreign investments. The sector is recovering from the impacts of the COVID-19 pandemic, which had significantly affected office, retail, and hospitality spaces due to social distancing and travel restrictions. In contrast, the demand for industrial and logistics real estate is growing, driven by increased e-commerce activities. The market's expansion is further shaped by technological innovations and a focus on environmental, social, and governance sustainability.

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Market Size of Commercial Real Estate Industry

Commercial Real Estate Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
CAGR 4.00 %
Fastest Growing Market North America
Largest Market Asia-Pacific
Market Concentration Low

Major Players

Commercial Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

Commercial Real Estate Market Analysis

The size of commercial real estate market is USD 13.5 trillion in the current year and is anticipated to register a CAGR of over 4% during the forecast period. China and Canada experienced growth in office space absorption, whereas Europe and the US saw declined rate. In addition, Asia-Pacific is leading in retail sales and logistics warehouse absorption in the global market.

  • The COVID-19 pandemic severely affected the commercial real estate sector, as travel restrictions and social distancing involved public mobilization, commercial works, and gathering facilities. The office, retail, and hospitality sectors were the most affected market segments during the pandemic. Furthermore, the global market is recovering as COVID-19 protocols are relaxed, and sales are reaching pre-pandemic levels.
  • The significant commercial real estate market growth is leveraged by urbanization, the commercial sector digitalization, and increasing foreign investments. For instance, in 2021, foreign investments in the European commercial real estate market accounted for half of the capital investments in that region, which is almost EUR 130 million (USD 137 million)
  • Many factors influence the development of the commercial real estate industry. Commercial real estate is, by definition, closely tied to the economy and the performance of various sectors.
  • There are different types of companies in the industry, such as real estate investors, developers, brokers, managers, media portals, and everyone who faces other challenges and opportunities as industry trends develop.
  • During the coronavirus pandemic, the need for social distancing caused offices worldwide to move to a hybrid work model, reducing demand for office space. Meanwhile, increasing e-commerce spending in many countries is leading and driving the need for more warehouses, fulfillment centers, and growth in the industrial and logistics real estate sector, which is paramount to the industry's future.
  • Some of the critical issues are the growing importance of technological innovation and environmental, social, and governance (ESG) sustainability.

Commercial Real Estate Industry Segmentation

Commercial real estate (CRE) refers to property for business-related purposes or to provide a workspace rather than a living space. The report covers segmentation by Type (Offices, Retail, Industrial/Logistics, Multi-family, and Hospitality) and by Geography (Asia-Pacific, North America, Europe, Middle-East and Africa, and Latin America). The report offers market size and forecasts for the commercial real estate market in value (USD billion) for all the above segments. The report also covers the impact of COVID-19 on the market.

By Type
Offices
Retail
Industrial/Logistics
Multi-family
Hospitality
By Geography
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Europe
United Kingdom
Germany
France
Russia
Rest of Europe
Middle-East and Africa
Saudi Arabia
United Arab Emirates
Qatar
South Africa
Rest of Middle-East and Africa
Latin America
Brazil
Mexico
Argentina
Colombia
Rest of Latin America
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Commercial Real Estate Market Size Summary

The commercial real estate market is experiencing a phase of recovery and growth, driven by factors such as urbanization, digitalization, and increased foreign investments. The market, significantly impacted by the COVID-19 pandemic, is rebounding as restrictions ease and demand for office, retail, and logistics spaces rises. The Asia-Pacific region is at the forefront of this recovery, particularly in the office and retail sectors, due to its robust economic growth and increasing consumer demand. The pandemic had initially led to a shift towards hybrid work models, reducing office space demand, but the market is now witnessing a resurgence in office occupancy and rental growth, especially in class-A offices. The retail sector, despite challenges from e-commerce and changing consumer behavior, is adapting through strategies like omnichannel retailing and remodeling shopping centers to meet evolving consumer needs.

The global commercial real estate market is characterized by its competitive and fragmented nature, with numerous players actively engaging in strategic partnerships and acquisitions to expand their portfolios. Key segments such as office, retail, and logistics are attracting significant investments, supported by declining vacancy levels and rising rentals. Major companies like Brookfield Asset Management Inc., Prologis Inc., and WANDA Group are leading the charge in this dynamic market. The industry's future is also shaped by technological innovations and a growing emphasis on environmental, social, and governance (ESG) sustainability. As the market continues to recover and evolve, it presents both challenges and opportunities for stakeholders across various sectors.

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Commercial Real Estate Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Market Drivers

      2. 1.2.2 Market Restraints

      3. 1.2.3 Market Opportunities

    3. 1.3 Supply Chain/Value Chain Analysis

    4. 1.4 Industry Attractiveness- Porter's Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Offices

      2. 2.1.2 Retail

      3. 2.1.3 Industrial/Logistics

      4. 2.1.4 Multi-family

      5. 2.1.5 Hospitality

    2. 2.2 By Geography

      1. 2.2.1 Asia-Pacific

        1. 2.2.1.1 China

        2. 2.2.1.2 Japan

        3. 2.2.1.3 India

        4. 2.2.1.4 South Korea

        5. 2.2.1.5 Rest of Asia-Pacific

      2. 2.2.2 North America

        1. 2.2.2.1 United States

        2. 2.2.2.2 Canada

      3. 2.2.3 Europe

        1. 2.2.3.1 United Kingdom

        2. 2.2.3.2 Germany

        3. 2.2.3.3 France

        4. 2.2.3.4 Russia

        5. 2.2.3.5 Rest of Europe

      4. 2.2.4 Middle-East and Africa

        1. 2.2.4.1 Saudi Arabia

        2. 2.2.4.2 United Arab Emirates

        3. 2.2.4.3 Qatar

        4. 2.2.4.4 South Africa

        5. 2.2.4.5 Rest of Middle-East and Africa

      5. 2.2.5 Latin America

        1. 2.2.5.1 Brazil

        2. 2.2.5.2 Mexico

        3. 2.2.5.3 Argentina

        4. 2.2.5.4 Colombia

        5. 2.2.5.5 Rest of Latin America

Commercial Real Estate Market Size FAQs

The Commercial Real Estate Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)

Brookfield Asset Management Inc., Prologis, Inc., SIMON PROPERTY GROUP, L.P., SHANNON WALTCHACK, LLC. and WANDA Group are the major companies operating in the Commercial Real Estate Market.

Commercial Real Estate Market Report Snapshots

Commercial Real Estate Market Size - Industry Report on Share, Growth Trends & Forecasts Analysis (2024 - 2029)