Commercial real estate market worldwide - statistics & facts
Commercial real estate is one of the most common asset classes, valued for its income generation potential through rent and capital appreciation over time. In 2023, the market size of the global commercial real estate sector was estimated at close to 37 trillion U.S. dollars, with North America valued at over 12 trillion U.S. dollars. A large share of these companies consists of private firms, with only a small portion trading on stock exchanges. North America accounted for the largest share of the listed real estate market, with a market capitalization of the sector amounting to 1.4 trillion U.S. dollars in 2023. In 2022, investments in commercial real estate declined notably, plateauing in 2023. The reason for that is the gap between seller-buyer expectations, but also economic uncertainty, and a tough lending environment.
As of July 2024, commercial real estate experts expressed the most favorable sentiment about the market fundamentals in the residential, alternatives, and industrial sectors. That includes their expectations about the development of rents, leasing activity, property pricing, transactions, capital cost, and availability. Alternative real estate was also highly popular among ultra-high net worth individuals (UHNWIs) in 2024, with healthcare and education properties emerging as the property types gaining the most popularity.
Largest commercial real estate companies worldwide
Blackstone is by far the largest commercial real estate asset management company worldwide by assets under management. In 2023, Blackstone held 586 billion U.S. dollars’ worth of real estate assets, more than 300 billion U.S. dollars more than the second company in the ranking, Brookfield Asset Management. Both companies are headquartered in the U.S. and manage a portfolio including real estate equity and debt. Besides asset management firms, real estate investment trusts (REITs) are another important investment vehicle in the real estate landscape. These are public companies that own and operate real estate to generate income, often focusing on a specific market segment, such as offices or logistics facilities. In April 2024, the REITs with the highest market cap were the industrial and logistics REIT Prologis and the infrastructure REIT American Tower.What are the most popular commercial property types?
Industrial real estate has been rising in prominence since 2015, and in the first quarter of 2024, it emerged as the commercial real estate sector with the highest share of investments. The growing e-commerce sector has been one of the major factors driving this trend, but not the only one. Supply shortages since the COVID-19 pandemic and trade tensions have also highlighted the importance of safeguarding supply chains and the role of industrial and logistics property in supporting that. Meanwhile, the office market has shrunk notably, as remote work and shifting occupier preferences in favor of newly built, modern buildings. That has led to a notable decline in office prices.As of July 2024, commercial real estate experts expressed the most favorable sentiment about the market fundamentals in the residential, alternatives, and industrial sectors. That includes their expectations about the development of rents, leasing activity, property pricing, transactions, capital cost, and availability. Alternative real estate was also highly popular among ultra-high net worth individuals (UHNWIs) in 2024, with healthcare and education properties emerging as the property types gaining the most popularity.
