North America Office Real Estate Market Size (2024 - 2029)

The North American office real estate market is currently in a recovery phase, influenced by the impacts of the COVID-19 pandemic and the subsequent shift in work culture. Despite not reaching pre-pandemic levels, the market is experiencing growth driven by increased office space absorption, leasing activities, and new construction. The United States plays a significant role in the region's market size, with a substantial amount of office inventory in both suburban and downtown areas. In Canada, the Class A office market is witnessing growth, marked by a high rate of available inventory and absorption.

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Market Size of North America Office Real Estate Industry

North America Office Real Estate Market Size
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 4.50 %
Market Concentration Low

Major Players

North America Office Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

North America Office Real Estate Market Analysis

The North American office real estate market is expected to register a CAGR of more than 4.5% during the forecast period.

The COVID-19 pandemic severely affected the office real estate market in North America due to restrictions and social distancing policies and the work from home culture. Now, the market is in the recovery phase but not up to the pre-pandemic levels. Furthermore, the growth of the sector is driven by increasing office space absorption, growth in leasing activities, construction of new office spaces, etc.

Furthermore, the United States is the major country in the North American office real estate market, which contributes more than 9.1 billion sq. ft of office inventory space in the suburban and downtown regions. Whereas, in the Canadian office market, growth was experienced in the Class A office market, with the highest rate of available inventory and absorption.

North America Office Real Estate Industry Segmentation

Office real estate refers to the construction of buildings for leasing and selling purposes to companies from different sectors. This report aims to provide a detailed analysis of the North American office real estate market. It focuses on the office real estate sector's market insights, dynamics, technological trends, and government initiatives. Also, this report covers segmentation by geography (United States, Canada, and Mexico) and sector (information technology (IT and ITES), manufacturing, BFSI (banking, financial services, and insurance), consulting, and other sectors). The report offers the market size and forecasts in value (USD billion) for all the above segments.

Geography
United States
Canada
Mexico
Sector
Information Technology (IT and ITES)
Manufacturing
BFSI (Banking, Financial Services, and Insurance)
Consulting
Other Sectors
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North America Office Real Estate Market Size Summary

The North American office real estate market is experiencing a recovery phase following the significant impact of the COVID-19 pandemic, which led to restrictions and a shift towards remote work. The market is now witnessing increased office space absorption, growth in leasing activities, and the construction of new office spaces. The United States plays a pivotal role in this market, with substantial office inventory in both suburban and downtown areas. Meanwhile, Canada is seeing growth in its Class A office market, characterized by high availability and absorption rates. Despite the challenges posed by the pandemic, the market is showing positive trends, with rental prices for office spaces, particularly Class A, experiencing upward momentum.

The recovery is marked by a resurgence in net office space absorptions and low vacancy rates, with many office activities returning to pre-pandemic levels. In the United States, there is a notable focus on long-term office space leases, with significant increases in leasing activity and net absorption rates. Canada is also witnessing growth in pre-leasing activities for under-construction projects. The demand for leasing is driven by various sectors, with technology services leading the charge. The market is fragmented, with major players like Hines, Turner Construction Company, and Brookfield Asset Management Inc. leveraging financial resources, while smaller companies compete by honing local market expertise. Recent developments include significant acquisitions and joint ventures, underscoring the dynamic nature of the market.

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North America Office 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 Drivers

      2. 1.2.2 Restraints

      3. 1.2.3 Opportunities

    3. 1.3 Government Regulations and Initiatives

    4. 1.4 Supply Chain/Value Chain Analysis

    5. 1.5 Porter's Five Forces Analysis

    6. 1.6 Technological Innovations in the Office Real Estate Market

    7. 1.7 Impact of Remote Working on Space Demand

    8. 1.8 Insights into Key Office Real Estate Industry Metrics (Supply, Rentals, Prices, and Occupancy (%)/Vacancy (%))

    9. 1.9 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 Geography

      1. 2.1.1 United States

      2. 2.1.2 Canada

      3. 2.1.3 Mexico

    2. 2.2 Sector

      1. 2.2.1 Information Technology (IT and ITES)

      2. 2.2.2 Manufacturing

      3. 2.2.3 BFSI (Banking, Financial Services, and Insurance)

      4. 2.2.4 Consulting

      5. 2.2.5 Other Sectors

North America Office Real Estate Market Size FAQs

The North America Office Real Estate Market is projected to register a CAGR of greater than 4.5% during the forecast period (2024-2029)

Hines , Turner Construction Company. , JBG SMITH Properties, Brookfield Asset Management Inc. and Trammell Crow Company are the major companies operating in the North America Office Real Estate Market.

North America Office Real Estate Market Report Snapshots

North America Office Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)