The Latest Cre Industry Statistics Explained
Commercial real estate (CRE) contribution to U.S. GDP averages $450 billion annually.
The statistic that commercial real estate (CRE) contributes an average of $450 billion annually to the U.S. Gross Domestic Product (GDP) highlights the significant economic impact of the CRE sector on the U.S. economy. This figure encompasses the value generated by various aspects of commercial real estate, including the construction, operation, and leasing of commercial properties such as office buildings, retail centers, and industrial facilities. The CRE industry’s substantial contribution to the overall GDP reflects its role as a key driver of economic growth, job creation, and investment in the United States. Analyzing changes in CRE’s contribution to GDP can provide valuable insights into the health and trajectory of the commercial real estate market and the broader economy.
The U.S. office vacancy rate was 14.2% as of Q4 2020.
The statistic “The U.S. office vacancy rate was 14.2% as of Q4 2020” indicates that 14.2% of the total office space in the United States was unoccupied during the fourth quarter of 2020. This rate serves as a measure of the health of the commercial real estate market, reflecting the balance between supply and demand for office spaces. A higher vacancy rate may suggest a weaker demand for office space, potentially due to economic conditions or changes in the way businesses operate. On the other hand, a lower vacancy rate may indicate a stronger demand and a healthier real estate market. Monitoring office vacancy rates is crucial for investors, developers, and policymakers to assess market trends and make informed decisions regarding commercial real estate investments.
Global real estate value amounted to approximately $280 trillion in 2020.
The statistic indicating that global real estate value amounted to approximately $280 trillion in 2020 represents the total estimated value of all real estate properties across the world for that specific year. This figure includes the combined market value of various types of properties such as residential, commercial, industrial, and agricultural real estate. Real estate is a crucial sector in the global economy, serving as a significant asset class for individuals, businesses, and governments worldwide. The substantial value of real estate assets highlights the importance of the industry in driving economic growth, investment opportunities, and wealth accumulation on a global scale.
There are approximately 92,000 commercial real estate businesses in the U.S.
The statistic that there are approximately 92,000 commercial real estate businesses in the U.S. provides insight into the size and scope of the commercial real estate industry in the country. This figure represents the number of businesses involved in activities such as property management, development, investment, and brokerage within the commercial real estate sector. With a significant presence in the U.S. economy, these businesses play a crucial role in facilitating transactions, managing properties, and contributing to the overall growth and stability of the real estate market. The vast number of commercial real estate businesses highlights the competitiveness and diversity within the industry, showcasing the various players and stakeholders involved in this sector.
CRE direct investments increased to $980 billion in 2019 in the U.S.
The statistic stating that commercial real estate (CRE) direct investments increased to $980 billion in 2019 in the United States indicates a significant growth in the amount of capital injected into the commercial real estate market during that year. This increase suggests a strong investor confidence in the commercial real estate sector, potentially driven by factors such as stable economic conditions, low interest rates, and the potential for attractive returns in the CRE market. Such a substantial uptick in direct investments can also reflect a robust demand for commercial properties as investors seek to diversify their portfolios and capitalize on the income-generating potential of CRE assets.
The size of the global real estate market was $8.9 trillion in 2018.
The statistic “The size of the global real estate market was $8.9 trillion in 2018” indicates the total value of all real estate assets worldwide in that particular year. This figure represents the combined worth of residential, commercial, and industrial properties, including land and buildings. It serves as a critical indicator of the scale and importance of the real estate industry on a global scale, highlighting the significant economic impact and investment opportunities within the sector. This statistic is essential for policymakers, investors, and researchers to understand the magnitude and trends of the real estate market, which plays a pivotal role in driving economic growth and stability across various countries and regions.
Commercial and multifamily mortgage bankers closed $601.9 billion worth of loans in 2019 in the U.S.
The statistic indicates that in 2019, commercial and multifamily mortgage bankers in the United States collectively finalized loans totaling $601.9 billion. This figure represents the total value of loans secured by these professionals for various commercial real estate projects, including office buildings, apartment complexes, retail centers, and other non-residential properties. The significant amount of loan closings suggests a robust demand for financing in the commercial real estate sector, indicating a thriving market for property development and investment activities. This statistic highlights the key role played by mortgage bankers in facilitating the funding necessary for the growth and expansion of commercial properties across the country.
The office sector held the biggest share in the CRE market at 36%, followed by retail sector at 16%.
The statistic suggests that within the commercial real estate (CRE) market, the office sector maintains the largest portion of market share at 36%, indicating that a significant proportion of commercial properties are classified as offices. This dominance in market share reflects the demand for office spaces by businesses for their operations. In contrast, the retail sector holds a smaller share of 16%, highlighting a relatively lower proportion of commercial properties dedicated to retail stores and outlets. This information provides insight into the composition of the CRE market, showcasing the relative prominence of office properties and the significant presence of retail properties, contributing to the diversity and dynamics of the commercial real estate industry.
CRE transactions in Asia totaled $169 billion in 2020.
The statistic “CRE transactions in Asia totaled $169 billion in 2020” indicates the total value of commercial real estate (CRE) transactions that occurred in the Asian market over the course of the year 2020. This figure highlights the substantial financial activity within the CRE sector in Asia during that year, reflecting investments, sales, and other transactions involving commercial properties such as office buildings, retail spaces, industrial facilities, and hotels. This statistic provides valuable insights into the scale and significance of the commercial real estate market in Asia, indicating the level of capital flowing into the region and the overall economic activity within the industry during the specified time period.
More than 75% of institutional investors plan to invest in Commercial real estate in 2021.
The statistic “More than 75% of institutional investors plan to invest in commercial real estate in 2021” indicates a high level of interest and confidence among institutional investors in the commercial real estate market for the upcoming year. This suggests that a majority of institutional investors, who typically have significant financial resources and expertise, view commercial real estate as a favorable investment opportunity likely due to factors such as potential return on investment, diversification benefits, and resilience in the face of economic uncertainties. The strong intention to invest in this asset class implies positive market sentiment and the expectation of continued growth and stability in the commercial real estate sector in 2021.
Investment in U.S. digital real estate increased by 60% to $36 billion in 2020.
The statistic indicates that the amount of investment in digital real estate in the United States saw a significant increase of 60% from the previous year, reaching a total of $36 billion in 2020. This substantial growth highlights the growing importance of digital assets and infrastructure within the real estate sector. The surge in investment suggests a strong belief in the potential and profitability of digital real estate, likely driven by factors such as the increasing reliance on technology and digital platforms, the shift towards remote working and online activities, and the overall trends toward digitalization across industries. This statistic underscores the evolving landscape of real estate investment, with a notable emphasis on digital assets as a promising avenue for financial growth and strategic development.
Real Estate Investment Trusts (REITs) make up roughly 20% of all commercial real estate in the United States.
The statistic that Real Estate Investment Trusts (REITs) make up roughly 20% of all commercial real estate in the United States indicates the significant presence and impact of REITs within the commercial real estate market. REITs are investment vehicles that allow investors to pool their funds to invest in a diversified portfolio of real estate assets, such as office buildings, shopping malls, and apartment complexes. The fact that REITs account for approximately one-fifth of all commercial real estate in the U.S. suggests that they play a substantial role in shaping the landscape of the real estate market and provide investors with opportunities to access real estate assets without directly owning them. This statistic highlights the importance of REITs as an investment option for individuals seeking exposure to the real estate market while benefiting from the potential income and diversification that these investment structures offer.
The size of the global professionally managed real estate investment market increased by 15% in 2020.
The statistic indicating that the size of the global professionally managed real estate investment market increased by 15% in 2020 suggests that there was significant growth and interest in real estate as an investment asset class during the year. This growth likely reflects several factors, such as continued demand for real estate investments despite economic uncertainties, low interest rates making real estate investments more attractive, and a shift in investment strategies towards more tangible assets amidst market volatility. A 15% increase in the size of the market indicates a substantial inflow of capital into real estate investments, highlighting the sector’s resilience and potential for strong returns even in challenging times.
China is the largest commercial real estate market, representing 20% of total global commercial real estate investment volume in 2020.
The statistic that China represents 20% of total global commercial real estate investment volume in 2020 indicates the significant influence and size of the Chinese commercial real estate market on the global scale. With China being one of the fastest-growing economies in the world and experiencing rapid urbanization and infrastructure development, investors are increasingly drawn to its real estate sector for potential growth opportunities. This statistic also highlights the importance of China as a destination for international investment capital in the commercial real estate industry and emphasizes the country’s role as a major player in the global real estate market.
Almost 80% of commercial real estate executives predict that their profitability will increase over the next 18 months according to a survey in 2020.
The statistic indicates that a significant majority of commercial real estate executives, accounting for almost 80%, are optimistic about the future profitability of their organizations. This optimism is based on the findings of a survey conducted in 2020, suggesting that these executives foresee an increase in profitability within the next 18 months. The high percentage of respondents with this positive outlook could be attributed to various factors such as market trends, economic conditions, or strategic planning within the commercial real estate sector. This statistic provides valuable insight into the sentiments and expectations of key industry stakeholders and may reflect a broader trend of confidence in the future performance of commercial real estate businesses.
References
0. – https://www.www.ey.com
1. – https://www.www.msci.com
2. – https://www.www.mba.org
3. – https://www.www.getrefm.com
4. – https://www.www.reit.com
5. – https://www.www.naiop.org
6. – https://www.www.savills.co.uk
7. – https://www.www.preqin.com
8. – https://www.www.bisnow.com
9. – https://www.realassets.ipe.com
10. – https://www.www2.deloitte.com
11. – https://www.www.prnewswire.com
12. – https://www.www.dnb.com
