Commercial Real Estate Market to Grow with a CAGR of 4.39% through 2028
The commercial
sector digitalization, and increasing foreign investments are likely to drive the
market in the forecast period.
According to TechSci Research report, “Commercial
Real Estate Market – Global Industry Size, Share, Trends, Competition
Forecast & Opportunities, 2028”, the Global Commercial Real Estate
Market stood at USD 4.15 Trillion in 2022 and is anticipated to grow with a
CAGR of 4.39% in the forecast period.
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.
Browse over XX market data Figures spread
through 180 Pages and an in-depth TOC on "Global CommercialReal Estate Market.”
The Global Commercial Real Estate Market is segmented
into types, and region.
Based on type, The office market was strongly hit by
the pandemic globally. Despite the vast disruption, now the market is in the
recovery phase. Furthermore, increasing investments in the sector are boosting
the economic recovery in the market. In 2021, office occupancy experienced
robust growth of more than 80% in almost 390 metro cities worldwide. Moreover,
30 million sq ft (MSF) of office space was absorbed since the third quarter of
2021. Meanwhile, the rental growth of the sector is in the slow recovery phase,
and EMEA experienced significant growth in rental growth. In addition, most of
the office space is absorbed by class-A offices with more than 61%, followed by
class-B and class-C offices with 32% and 7%, respectively. Furthermore, the
Asia-Pacific (APAC) region is leading in the office market due to population
growth, GDP growth, middle-class consumers, and the working-age population
leveraging office demand. Also, the APAC region contributes more than 50% of
office construction in the global market.
Major companies operating in the Global Commercial
Real Estate Market are:
• Brookfield Asset Management Inc.
• Prologis Inc.
• Simon Property Group LP
• Shannon waltchack LLC
• DLF Ltd
• Boston Properties Inc.
• Segro
• Link Asset Management Limited
• Wanda Group
• Onni Contracting Ltd
Download Free Sample Report
Customers can also request for 10%
free customization on this report.
Despite many challenges, the sector stood resilient,
as e-commerce sales during the pandemic accounted for only 14% of overall
retail sales. Moreover, developers are focusing on different strategies to meet
consumer demand and adapt to the changing retail environment. Such as
remodeling shopping centers for multiple purposes, customizing tenant mix, and
developing new lease models to attract the latest business models. In addition,
to meet consumer demand, some retailers are expanding their business through
omnichannel strategies, such as click-and-collect, curbside pickup, and
ship-from-store, by adopting new technologies.
“Several key drivers influence the global commercial
real estate market, shaping its dynamics and investment opportunities. These
drivers include economic growth, urbanization, technological advancements, and
changing tenant preferences. Economic growth is a primary driver, as it
stimulates demand for various types of commercial properties. A strong economy
leads to increased business activity, driving demand for office spaces, retail
establishments, and industrial facilities. Urbanization is another significant
driver, as more people move to cities, creating a need for office buildings,
residential complexes, and retail spaces in urban areas. Technological
advancements, including the rise of e-commerce and smart building technologies,
are reshaping tenant requirements and operational efficiencies, impacting the
demand for commercial real estate. Changing tenant preferences, influenced by
factors like remote work, sustainability, and wellness, are driving the
transformation of commercial properties. Flexible workspaces, sustainability
features, and wellness amenities are increasingly attractive to tenants. Additionally,
globalization, infrastructure investment, government policies, and interest
rates play crucial roles in the market. Cross-border investment, government
incentives, and infrastructure development can significantly affect property
values and investment decisions, while interest rates impact borrowing costs
for developers and investors. Understanding and responding to these drivers is
essential for investors, developers, and other stakeholders to make informed
decisions and navigate the ever-evolving global commercial real estate market
successfully.,” said Mr. Karan Chechi, Research Director with TechSci Research,
a research-based management consulting firm.
“Commercial Real Estate Market– Global Industry Size,
Share, Trends, Opportunity, and Forecast
By Type (Offices, Retail, Industrial and Logistics, Multi-family, and
Hospitality), By Region, By Competition Forecast & Opportunities, 2018-2028F ”, has evaluated the future growth potential of Global
Commercial Real Estate Market and provides statistics & information on
market size, structure and future market growth. The report intends to provide
cutting-edge market intelligence and help decision-makers take sound investment
decisions., the report also identifies and analyzes the emerging trends along
with essential drivers, challenges, and opportunities in the Global Commercial
Real Estate Market.
Contact
Mr. Ken Mathews
708 Third Avenue,
Manhattan, NY,
New York 10017
Tel:
+1-646-360-1656
Email:
[email protected]
Website:
https://www.techsciresearch.com