GITNUX REPORT 2024

Global Commercial Real Estate Market Soars to $33.7 Trillion

Dive into the dynamic world of commercial real estate with market insights and projections.

Author: Jannik Lindner

First published: 7/17/2024

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The Asia Pacific region dominated the market with a revenue share of 40.9% in 2022

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The global commercial real estate investment volume reached $1.3 trillion in 2021

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The average cap rate for U.S. commercial real estate was 6.3% in 2021

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The U.S. multifamily sector saw a record $335.3 billion in investment volume in 2021

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The average cap rate for U.S. industrial properties was 5.1% in Q4 2021

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The U.S. commercial mortgage-backed securities (CMBS) issuance reached $110 billion in 2021

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The global real estate asset management market size is expected to reach $19.97 billion by 2028

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The global commercial real estate investment trusts (REITs) market size was valued at $1.25 trillion in 2020

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The global commercial real estate crowdfunding market size is expected to reach $868.98 billion by 2027

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The U.S. commercial real estate lending market size was valued at $3.1 trillion in 2020

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The U.S. commercial property transaction volume reached $809 billion in 2021

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The average cap rate for U.S. multifamily properties was 4.5% in Q4 2021

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The global commercial real estate investment management market size was valued at $10.5 billion in 2020

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The U.S. commercial real estate debt market size was valued at $4.5 trillion in 2020

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The average cap rate for U.S. retail properties was 6.5% in Q4 2021

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The U.S. commercial real estate investment market size was valued at $1.2 trillion in 2020

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The commercial real estate market is expected to grow at a CAGR of 5.7% from 2023 to 2030

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The U.S. commercial property price index increased by 22.9% year-over-year in December 2021

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The global commercial real estate market is expected to reach $50.03 trillion by 2030

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The U.S. commercial real estate market is expected to grow at a CAGR of 5.4% from 2021 to 2028

Statistic 21

The global commercial real estate market size was valued at USD 33.7 trillion in 2022

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The U.S. commercial real estate market size was valued at USD 1.1 trillion in 2022

Statistic 23

The global commercial real estate services market size is expected to reach $1.63 trillion by 2030

Statistic 24

The global commercial real estate brokerage and management market size was valued at $235.1 billion in 2020

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The global commercial real estate appraisal market size was valued at $7.3 billion in 2020

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The U.S. commercial real estate services market size was valued at $200.85 billion in 2020

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The global commercial real estate brokerage market size is expected to reach $189.85 billion by 2028

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The global commercial real estate valuation market size was valued at $5.8 billion in 2020

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The U.S. commercial real estate construction market size was valued at $1.03 trillion in 2020

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The global commercial real estate property management market size is expected to reach $19.33 billion by 2028

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The global commercial real estate leasing market size was valued at $2.5 trillion in 2020

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The global commercial real estate advisory market size is expected to reach $357.39 billion by 2028

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The global commercial real estate development market size was valued at $6.8 trillion in 2020

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The average size of office space per employee decreased from 225 sq ft in 2010 to 176 sq ft in 2020

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Flexible office space is expected to account for 30% of office space by 2030

Statistic 36

The average lease term for office space decreased from 7.3 years in 2019 to 6.9 years in 2020

Statistic 37

The average office vacancy rate in the U.S. was 15.5% in Q4 2021

Statistic 38

The average price per square foot for U.S. office space was $35.78 in 2021

Statistic 39

The average office space utilization rate decreased from 60% pre-pandemic to 40% in 2021

Statistic 40

The average asking rent for U.S. office space was $35.10 per square foot in Q4 2021

Statistic 41

Office spaces accounted for the largest revenue share of 31.1% in 2022

Statistic 42

The retail segment is expected to witness the fastest CAGR of 6.2% from 2023 to 2030

Statistic 43

The global data center real estate market is projected to reach $58.28 billion by 2027

Statistic 44

The industrial real estate vacancy rate in the U.S. hit a record low of 4.3% in Q4 2021

Statistic 45

The global cold storage market size is expected to reach $320.2 billion by 2028

Statistic 46

The life sciences real estate sector saw a 62% increase in venture capital funding in 2020

Statistic 47

The global data center colocation market is expected to reach $117.82 billion by 2028

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The U.S. self-storage market size was valued at $48.02 billion in 2020

Statistic 49

The average asking rent for U.S. industrial space was $8.44 per square foot in Q4 2021

Statistic 50

The U.S. data center market size is expected to reach $13.91 billion by 2026

Statistic 51

The average vacancy rate for U.S. retail properties was 5.2% in Q4 2021

Statistic 52

E-commerce sales are expected to reach 22% of total retail sales by 2023

Statistic 53

The global green building market size is expected to reach $654.41 billion by 2028

Statistic 54

75% of occupiers and investors believe that climate change will have a moderate to significant impact on their real estate strategy

Statistic 55

The global proptech market size is expected to reach $86.5 billion by 2032

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58% of commercial real estate firms have adopted cloud technology

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The global smart building market size is projected to reach $229.10 billion by 2026

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The global warehouse automation market is expected to reach $41 billion by 2027

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The global commercial real estate software market size is expected to reach $14.23 billion by 2028

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The global smart cities market size is expected to reach $2.5 trillion by 2025

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The global smart building automation systems market size is expected to reach $121.6 billion by 2028

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The global smart parking market size is expected to reach $11.13 billion by 2027

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The global commercial real estate software market is expected to grow at a CAGR of 7.2% from 2021 to 2028

Statistic 64

The global smart building market is expected to grow at a CAGR of 11.33% from 2021 to 2026

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Summary

  • The global commercial real estate market size was valued at USD 33.7 trillion in 2022
  • The commercial real estate market is expected to grow at a CAGR of 5.7% from 2023 to 2030
  • Office spaces accounted for the largest revenue share of 31.1% in 2022
  • The retail segment is expected to witness the fastest CAGR of 6.2% from 2023 to 2030
  • The Asia Pacific region dominated the market with a revenue share of 40.9% in 2022
  • The U.S. commercial real estate market size was valued at USD 1.1 trillion in 2022
  • The average size of office space per employee decreased from 225 sq ft in 2010 to 176 sq ft in 2020
  • E-commerce sales are expected to reach 22% of total retail sales by 2023
  • The global data center real estate market is projected to reach $58.28 billion by 2027
  • The industrial real estate vacancy rate in the U.S. hit a record low of 4.3% in Q4 2021
  • The global commercial real estate investment volume reached $1.3 trillion in 2021
  • The average cap rate for U.S. commercial real estate was 6.3% in 2021
  • Flexible office space is expected to account for 30% of office space by 2030
  • The global green building market size is expected to reach $654.41 billion by 2028
  • 75% of occupiers and investors believe that climate change will have a moderate to significant impact on their real estate strategy

<p>Step right up, ladies and gentlemen, to witness the dazzling spectacle that is the commercial real estate market! With a value of USD 33.7 trillion in 2022 and projections of a 5.7% growth rate from 2023 to 2030, this market is no shrinking violet. From office spaces reigning supreme with a 31.1% revenue share to the retail segment poised for a speedy 6.2% CAGR, the show is just getting started. So, grab your popcorn and settle in as we delve into the world where the Asia Pacific region holds court, e-commerce sales make waves, and flexible office space plans to commandeer 30% of the spotlight by 2030. Sit tight, folks – this extravaganza is about to unfold with all the drama and flair you never knew you needed!</p>

Geographic Trends

  • The Asia Pacific region dominated the market with a revenue share of 40.9% in 2022

Interpretation

In the high-stakes world of Commercial Real Estate, the Asia Pacific region is strutting its stuff like a confident peacock, flaunting a revenue share of 40.9% in 2022. With ambition as tall as its skyscrapers, this region is clearly making a statement - one that whispers to the rest of the world, "Watch out, we mean business." So, to all the other contenders in this global real estate arena, the message is clear: it's time to up your game or risk being overshadowed by the rising titan of the East.

Investment

  • The global commercial real estate investment volume reached $1.3 trillion in 2021
  • The average cap rate for U.S. commercial real estate was 6.3% in 2021
  • The U.S. multifamily sector saw a record $335.3 billion in investment volume in 2021
  • The average cap rate for U.S. industrial properties was 5.1% in Q4 2021
  • The U.S. commercial mortgage-backed securities (CMBS) issuance reached $110 billion in 2021
  • The global real estate asset management market size is expected to reach $19.97 billion by 2028
  • The global commercial real estate investment trusts (REITs) market size was valued at $1.25 trillion in 2020
  • The global commercial real estate crowdfunding market size is expected to reach $868.98 billion by 2027
  • The U.S. commercial real estate lending market size was valued at $3.1 trillion in 2020
  • The U.S. commercial property transaction volume reached $809 billion in 2021
  • The average cap rate for U.S. multifamily properties was 4.5% in Q4 2021
  • The global commercial real estate investment management market size was valued at $10.5 billion in 2020
  • The U.S. commercial real estate debt market size was valued at $4.5 trillion in 2020
  • The average cap rate for U.S. retail properties was 6.5% in Q4 2021
  • The U.S. commercial real estate investment market size was valued at $1.2 trillion in 2020

Interpretation

In a whirlwind of numbers and figures, the commercial real estate market dances to its own cap rate tune, making billions look like pocket change. With investment volumes soaring to the stratosphere and cap rates performing a delicate balancing act, it seems that the world of commercial real estate is a high-stakes game where billions are wagered on properties. From industrial properties boasting low cap rates to the ever-sought-after multifamily sector hitting record highs, it's a wild ride through the skyscrapers and shopping malls of global real estate. As the market sizes grow larger and the numbers become more astounding, one can't help but wonder if it's all just a numbers game or a true reflection of the world's financial landscape.

Market Growth

  • The commercial real estate market is expected to grow at a CAGR of 5.7% from 2023 to 2030
  • The U.S. commercial property price index increased by 22.9% year-over-year in December 2021
  • The global commercial real estate market is expected to reach $50.03 trillion by 2030
  • The U.S. commercial real estate market is expected to grow at a CAGR of 5.4% from 2021 to 2028

Interpretation

As the winds of change blow through the commercial real estate landscape, a tale of growth and resilience emerges. With a steady CAGR forecasted both globally and in the U.S., the sector seems poised for a fruitful decade ahead. The eye-popping statistics, such as the soaring property price index and the projected trillion-dollar market valuation, paint a picture of a market that refuses to be contained. So buckle up, dear investors and developers, for the ride ahead promises to be as thrilling as a roller coaster, with twists, turns, and opportunities aplenty.

Market Size

  • The global commercial real estate market size was valued at USD 33.7 trillion in 2022
  • The U.S. commercial real estate market size was valued at USD 1.1 trillion in 2022
  • The global commercial real estate services market size is expected to reach $1.63 trillion by 2030
  • The global commercial real estate brokerage and management market size was valued at $235.1 billion in 2020
  • The global commercial real estate appraisal market size was valued at $7.3 billion in 2020
  • The U.S. commercial real estate services market size was valued at $200.85 billion in 2020
  • The global commercial real estate brokerage market size is expected to reach $189.85 billion by 2028
  • The global commercial real estate valuation market size was valued at $5.8 billion in 2020
  • The U.S. commercial real estate construction market size was valued at $1.03 trillion in 2020
  • The global commercial real estate property management market size is expected to reach $19.33 billion by 2028
  • The global commercial real estate leasing market size was valued at $2.5 trillion in 2020
  • The global commercial real estate advisory market size is expected to reach $357.39 billion by 2028
  • The global commercial real estate development market size was valued at $6.8 trillion in 2020

Interpretation

In a world where numbers and decimals dance around skyscrapers, the commercial real estate market continues to be a playground for the fearless and the strategic. From the towering USD 33.7 trillion global market size in 2022 to the microscopic yet mighty $7.3 billion global commercial real estate appraisal market, every dollar counts in this high-stakes game of property and profit. As we look ahead to 2030, with projections as ambitious as the gleaming buildings themselves, one thing is clear: in the realm of bricks and mortar, valuation is both an art and a science, where billions swirl in a symphony of deals, services, and dreams of development.

Office Trends

  • The average size of office space per employee decreased from 225 sq ft in 2010 to 176 sq ft in 2020
  • Flexible office space is expected to account for 30% of office space by 2030
  • The average lease term for office space decreased from 7.3 years in 2019 to 6.9 years in 2020
  • The average office vacancy rate in the U.S. was 15.5% in Q4 2021
  • The average price per square foot for U.S. office space was $35.78 in 2021
  • The average office space utilization rate decreased from 60% pre-pandemic to 40% in 2021
  • The average asking rent for U.S. office space was $35.10 per square foot in Q4 2021

Interpretation

In the ever-evolving landscape of commercial real estate, the numbers paint a vivid picture of changing trends and shifting preferences. From the shrinking personal bubbles of employees, with office space per capita resembling a cozy studio apartment, to the rise of flexible workspaces poised to claim a third of the office real estate game by 2030, it seems the traditional office lease is getting a millennial makeover with shorter terms. However, the dance between supply and demand continues on a wobbly floor, as the average vacancy rate in the U.S. stands at an uninviting 15.5%, and the utilization rate takes a hit post-pandemic. Amidst these fluctuations, one thing remains a constant: the price of a square foot of office space, faithfully holding its ground at $35.78 in 2021, a figure sure to make both landlords and tenants break out their calculators.

Property Types

  • Office spaces accounted for the largest revenue share of 31.1% in 2022
  • The retail segment is expected to witness the fastest CAGR of 6.2% from 2023 to 2030
  • The global data center real estate market is projected to reach $58.28 billion by 2027
  • The industrial real estate vacancy rate in the U.S. hit a record low of 4.3% in Q4 2021
  • The global cold storage market size is expected to reach $320.2 billion by 2028
  • The life sciences real estate sector saw a 62% increase in venture capital funding in 2020
  • The global data center colocation market is expected to reach $117.82 billion by 2028
  • The U.S. self-storage market size was valued at $48.02 billion in 2020
  • The average asking rent for U.S. industrial space was $8.44 per square foot in Q4 2021
  • The U.S. data center market size is expected to reach $13.91 billion by 2026
  • The average vacancy rate for U.S. retail properties was 5.2% in Q4 2021

Interpretation

As the world of commercial real estate continues to evolve, the numbers paint a fascinating picture of shifting landscapes and booming markets. From the surge in demand for office spaces to the steady rise of the retail segment, and the lucrative opportunities in data center real estate, it's clear that the industry is a complex ecosystem of growth and innovation. With industrial vacancy rates hitting record lows and the global cold storage market on the brink of explosive expansion, it's a thrilling time for investors and stakeholders alike. So, whether you're diving into the colocation market or eyeing the self-storage sector, one thing is certain - the only way is up in this dynamic realm of bricks, mortar, and endless potential.

Retail Trends

  • E-commerce sales are expected to reach 22% of total retail sales by 2023

Interpretation

As the virtual aisles of e-commerce continue to expand rapidly, traditional brick-and-mortar retailers may need to brace themselves for a seismic shift in the commercial real estate landscape. With e-commerce sales projected to capture 22% of total retail sales by 2023, the proverbial "retail apocalypse" seems to be evolving into a digital revolution, reshaping the very foundation of our shopping experience. It appears that the future of commercial real estate is not only being sold online but is also clicking its way into uncharted territory, challenging landlords and retailers alike to adapt, evolve, and perhaps even reinvent the way we define physical retail spaces in a rapidly digitizing world.

Sustainability

  • The global green building market size is expected to reach $654.41 billion by 2028
  • 75% of occupiers and investors believe that climate change will have a moderate to significant impact on their real estate strategy

Interpretation

With billions of dollars at stake in the global green building market by 2028, it's clear that sustainability has become a non-negotiable element within the commercial real estate industry. As 75% of occupiers and investors brace themselves for the climate change impact on their real estate strategies, it seems that being eco-friendly is not just good for the planet, but for the bottom line as well. In a world where physical spaces are now judged by their environmental footprint, it's safe to say that going green is the new gold standard in real estate.

Technology

  • The global proptech market size is expected to reach $86.5 billion by 2032
  • 58% of commercial real estate firms have adopted cloud technology
  • The global smart building market size is projected to reach $229.10 billion by 2026
  • The global warehouse automation market is expected to reach $41 billion by 2027
  • The global commercial real estate software market size is expected to reach $14.23 billion by 2028
  • The global smart cities market size is expected to reach $2.5 trillion by 2025
  • The global smart building automation systems market size is expected to reach $121.6 billion by 2028
  • The global smart parking market size is expected to reach $11.13 billion by 2027
  • The global commercial real estate software market is expected to grow at a CAGR of 7.2% from 2021 to 2028
  • The global smart building market is expected to grow at a CAGR of 11.33% from 2021 to 2026

Interpretation

In the ever-evolving landscape of commercial real estate, it seems the future is as bright and shiny as a newly renovated smart building. With global proptech projected to hit $86.5 billion by 2032, it's clear that the industry is embracing technology like never before. From cloud technology adoption in 58% of firms to the rise of smart cities and automated warehouses, it's a digital revolution in the concrete jungle. So, if you're still parking manually in a non-smart space, it might be time to upgrade to the fast lane of progress before the market leaves you behind in the virtual dust.

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