North America Commercial Real Estate Market By Type (Offices, Retail, Industrial & Logistics, Multi-Family, Hospitality), By Business (Sales, Rental, Lease), By Country, By Competition, Forecast and Opportunities, 2020-2030F

Market Overview

The North America Commercial Real Estate Market was valued at USD 1.31 Billion in 2024 and is expected to reach USD 1.68 Billion by 2030 with a CAGR of 4.23% during the forecast period. The North America commercial real estate market encompasses the development, leasing, and sale of non-residential properties including office buildings, retail centers, industrial facilities, hotels, and multifamily housing units. It serves as a backbone of economic activity by providing the physical infrastructure for businesses and institutions to operate, expand, and invest.

The market is poised for substantial growth due to several converging factors. Major urban centers across the United States, Canada, and Mexico are experiencing a resurgence in development projects driven by population growth, shifting demographics, and evolving business needs. Corporations are increasingly demanding smart buildings that are energy-efficient, digitally connected, and adaptable to hybrid work environments.

The rise in e-commerce is bolstering the need for large-scale warehousing and logistics hubs, particularly near metropolitan areas. Government-backed infrastructure programs, like the United States’ Infrastructure Investment and Jobs Act, are also fueling the construction and redevelopment of commercial zones. In Canada, commercial real estate is benefiting from immigration-driven population increases, which support the retail and multifamily segments. Mexico is seeing heightened foreign investment in industrial parks and nearshoring opportunities, particularly in regions near the United States border.

Another key driver is the focus on environmental, social, and governance standards, which is pushing developers and investors to create buildings that align with sustainable practices and regulatory expectations. Proptech innovations, such as automated property management systems and digital leasing platforms, are further streamlining operations and enhancing tenant engagement. The market’s future growth will also be shaped by investor interest in mixed-use developments that blend work, living, and leisure, reflecting lifestyle trends and urban densification. As economies continue to rebound and adapt post-pandemic, commercial real estate in North America will remain a pivotal asset class, attracting both domestic and international capital and reshaping the built environment across the continent.

Key Market Drivers

Urbanization and Population Growth Fueling Commercial Infrastructure Expansion

One of the most significant drivers behind the growth of the North America commercial real estate market is the continuous rise in urbanization and population concentration in metropolitan and suburban areas. Cities across the United States, Canada, and Mexico are experiencing an influx of residents seeking employment, education, and improved standards of living. This demographic shift is accelerating the need for commercial spaces, including office buildings, shopping centers, logistics hubs, multifamily housing, and hospitality facilities. The convergence of population growth and evolving urban design is pushing municipalities to reimagine space usage to accommodate economic and social activity. Downtown cores are being redeveloped to include commercial mixed-use properties that combine workspaces, residential units, and leisure zones.

In Canada, cities like Toronto and Vancouver are experiencing rapid development of commercial high-rises to address the growing need for business and retail footprints. In the United States, Sun Belt cities such as Austin, Nashville, and Phoenix are witnessing a surge in construction permits and new office leases driven by technology and service-sector expansion. Mexico’s urban growth in cities such as Monterrey and Querétaro is giving rise to industrial parks and retail developments as foreign investors target these hubs. This sustained urban migration also spurs demand for supportive infrastructure including parking structures, transit-linked developments, and business service centers. With cities adopting long-term urban growth strategies that prioritize vertical development and efficient land usage, commercial real estate continues to be a critical element in regional economic planning.

According to the United States Census Bureau, from 2020 to 2023, over 7.5 million people moved into metropolitan statistical areas in the United States, contributing to a 12 percent increase in new non-residential building permits in urban counties during the same period.

Surge in E-Commerce and Demand for Industrial Warehousing

The exponential growth of digital commerce has reshaped the structure and trajectory of the North America commercial real estate market, particularly in the industrial segment. Online retailers, logistics providers, and fulfillment companies are seeking large-scale warehousing facilities that can serve as last-mile distribution centers to meet same-day or next-day delivery demands. The proliferation of e-commerce platforms has shifted consumer expectations and, in turn, forced retailers to secure strategically located industrial properties near urban hubs. This trend is especially pronounced in the United States, where states such as Texas, Illinois, and Pennsylvania are becoming logistics hotspots due to their central locations and transportation infrastructure.

Canada is experiencing similar activity in areas surrounding Toronto and Vancouver, where demand for warehousing exceeds current supply. Mexico is also benefiting from e-commerce-driven demand, particularly with the rise of nearshoring by global brands seeking to reduce supply chain vulnerabilities. The necessity for technologically advanced warehouses equipped with automated storage, inventory tracking, and climate control has fueled both greenfield development and retrofitting of older structures. As long as consumer behavior continues to favor convenience and digital shopping, commercial real estate investors will remain focused on acquiring or developing industrial assets to support this growing logistics network.

The United States Postal Service reported a 21 percent year-on-year increase in last-mile parcel volume between 2022 and 2023, with e-commerce fulfillment centers accounting for over 70 million square feet of new industrial construction in 2023 alone.

Technological Integration and Smart Building Adoption

The growing emphasis on digital transformation is significantly influencing the commercial real estate landscape across North America. Developers, tenants, and investors are prioritizing smart buildings that are equipped with integrated systems for lighting, heating, ventilation, air conditioning, security, occupancy sensors, and tenant experience management. These systems reduce operational costs, improve energy efficiency, and enable real-time data analytics for building performance.

With the rise of hybrid work models, especially in the office sector, tenants are demanding adaptable workspaces that integrate high-speed connectivity, remote access systems, and space management platforms. Property owners are also using technology to streamline leasing, tenant communication, and maintenance operations. The appeal of smart buildings is particularly strong among multinational corporations seeking future-ready facilities. In Canada, this trend is evident in high-tech campuses and innovation districts. Mexico is also adopting smart technologies in new business parks that are attracting foreign investment. In the post-pandemic environment, buildings with touchless access, air quality monitoring, and real-time occupancy tracking are being prioritized for health and safety compliance.

According to the United States Green Building Council, over 2,000 new commercial properties were certified as smart or energy-efficient buildings in the United States in 2023 alone, marking a 27 percent increase from the previous year.

Expansion of Mixed-Use Developments Driven by Lifestyle Shifts

Consumer lifestyle changes and shifting urban dynamics are driving a strong preference for mixed-use developments that blend residential, retail, office, hospitality, and entertainment spaces into a single integrated environment. This trend is transforming the commercial real estate market across North America, as developers respond to the demand for convenience, walkability, and community-centric design. With the rise of remote work and flexible schedules, consumers and professionals alike are seeking live-work-play environments that minimize commute times and maximize amenities.

Retailers are also finding value in co-locating within residential and office precincts where foot traffic is organically higher. Municipalities are increasingly revising zoning laws to accommodate these integrated projects, particularly in revitalization districts. In Canada, projects in cities such as Ottawa and Montreal are combining transit hubs with retail and office towers. In the United States, mixed-use campuses in Atlanta and Denver are emerging as major commercial real estate growth nodes. Mexico is also seeing new investment in vertical mixed-use towers that address housing and commercial demand simultaneously. This model of development offers long-term value for developers and investors while enhancing livability for occupants and workers.

The United States Department of Housing and Urban Development reported a 19 percent increase in building permits for mixed-use developments between 2021 and 2023, totaling over 160,000 units incorporating commercial elements during that time.

Download Free Sample Report

Key Market Challenges

Volatile Interest Rates and Rising Borrowing Costs Disrupting Investment Activity

The North America commercial real estate market is increasingly grappling with the adverse effects of volatile interest rate policies and elevated borrowing costs, which are posing significant challenges to both developers and institutional investors. Central banks across the region, including the United States Federal Reserve, the Bank of Canada, and Banco de México, have been aggressively adjusting policy rates in response to inflationary pressures and broader macroeconomic uncertainties. These monetary decisions have a direct impact on the cost of capital, making it more expensive for commercial real estate stakeholders to finance new developments, refinance existing properties, or secure funding for acquisitions.

In this environment, traditional debt structures that once supported stable return profiles are being reassessed, leading to a reevaluation of risk among lenders and borrowers alike. For instance, developers are now required to bring more equity to the table or offer higher collateral to satisfy lending criteria, which creates barriers for small to medium-sized enterprises and first-time market entrants. Simultaneously, institutional investors are pulling back from high-risk commercial projects or demanding higher internal rate of return thresholds to justify investment in a tightening fiscal climate. The consequence of these financial pressures is a measurable slowdown in transaction volumes, stalled construction projects, and an increase in loan defaults, particularly in commercial segments with already declining yields such as standalone retail and suburban office properties. The uncertainty surrounding future interest rate movements also contributes to delays in project initiation, as developers await more favorable conditions or reassess the long-term feasibility of planned investments.

Property valuations have begun to experience downward pressure as capitalization rates expand in response to higher cost of funds, which negatively affects the overall asset performance and return on investment for real estate portfolios. This changing valuation landscape complicates refinancing efforts and leads to discrepancies in buyer-seller price expectations, causing deals to fall through or remain dormant. In summary, while the North America commercial real estate market remains fundamentally strong due to urbanization and economic diversification, the unpredictability of interest rate movements and elevated debt service obligations are curbing growth momentum, weakening investor sentiment, and reducing liquidity in a capital-intensive sector that relies heavily on financial leverage for expansion.

Shifting Work Models and Declining Office Space Demand Undermining Asset Utilization

The evolution of workplace models, particularly the widespread adoption of remote and hybrid working structures, has created a fundamental and persistent disruption in the office segment of the North America commercial real estate market. This shift, accelerated by the global health crisis and maintained by evolving workforce preferences, has led to a significant decline in the need for traditional office spaces, especially in central business districts. Many organizations across the region have opted to downsize their physical footprints, sublease excess space, or adopt flexible co-working arrangements, all of which challenge the conventional long-term leasing model that commercial office real estate was historically built upon.

The result has been a marked increase in vacancy rates across many Tier 1 and Tier 2 cities, with some office towers reporting occupancy below fifty percent despite being operational for years. This underutilization poses a direct threat to property revenues, impairs operational cash flows, and forces landlords to offer unprecedented leasing incentives such as rent abatements, tenant improvement allowances, and flexible lease terms to attract or retain tenants. The decline in demand for large floor plate office spaces has prompted many developers to reconsider new builds or explore conversions into mixed-use or residential configurations, which come with high capital requirements and complex regulatory approvals. The psychological aspect of returning to offices amid ongoing health concerns and quality-of-life expectations has further strengthened resistance to traditional workspaces, particularly among technology firms and creative industries that can operate effectively with a distributed workforce. This behavioral shift is also prompting investors to recalibrate portfolio allocations by reducing exposure to commercial office holdings and redirecting capital toward logistics, industrial, or data center assets that are seen as more resilient and future-oriented.

The challenge is compounded in legacy buildings that lack modern amenities, sustainable certifications, or adaptable design features, making them less attractive in a market increasingly driven by health, wellness, and efficiency standards. In essence, the long-term structural change in how work is conducted is redefining the role, utility, and viability of office real estate in North America, creating a multifaceted challenge for asset managers, developers, and investors trying to future-proof their strategies and ensure consistent occupancy, valuation stability, and return on investment.

Regulatory Complexities and Zoning Constraints Hindering Project Approvals

Regulatory barriers and inconsistent zoning frameworks across municipalities in North America are significantly hindering the fluid expansion and timely execution of commercial real estate projects. The commercial real estate development process is heavily dependent on clear, predictable, and supportive regulatory environments to approve building permits, secure land use rights, and comply with construction, environmental, and safety standards. However, the fragmented nature of governance in North America, where local, state, provincial, and federal authorities each exercise jurisdiction over various elements of land development, often results in prolonged approval cycles, legal disputes, and costly compliance delays.

Developers face unique zoning ordinances, public hearings, and community consultation requirements that differ drastically between cities and even neighborhoods, complicating project timelines and budget forecasting. In some high-demand urban centers such as New York, Toronto, and San Francisco, commercial real estate projects must navigate through layers of heritage preservation rules, traffic studies, environmental impact assessments, and affordability mandates before receiving a final green light. These regulatory delays can extend project initiation by several months or even years, leading to cost overruns, financing risks, and opportunity loss in highly competitive markets. Political pressures and public opposition to commercial developments—especially in historically residential or gentrifying areas—often result in stalled rezoning applications and legal appeals that burden developers with uncertainty and excessive expenditure.

In Mexico, while the regulatory environment has improved in major metropolitan zones, inconsistent enforcement and administrative inefficiencies still deter large-scale foreign investments. Compounding the issue is the increasing stringency of green building codes and sustainable development mandates, which require compliance with energy efficiency benchmarks, waste management protocols, and carbon footprint disclosures. While these regulations are crucial for long-term environmental stewardship, their implementation without clear guidelines or incentives adds another layer of complexity to the development process. For investors, these hurdles contribute to risk aversion and reluctance to commit capital to new builds, preferring instead to acquire existing stabilized assets even at premium prices. In conclusion, the regulatory and zoning landscape across North America remains a critical challenge that must be addressed through streamlined policy reform, inter-agency coordination, and digitization of permitting systems to facilitate timely, equitable, and economically viable commercial real estate development.

Key Market Trends

Acceleration of Mixed-Use Developments in Urban and Suburban Regions

The North America commercial real estate market is witnessing a pronounced shift toward mixed-use developments that seamlessly integrate residential, retail, hospitality, office, and entertainment facilities within a single footprint. This trend is largely driven by evolving consumer preferences for convenience, work-life balance, and community-centric lifestyles, especially among younger demographics and knowledge-economy professionals. Urban planners and real estate developers are increasingly collaborating to reimagine underutilized commercial zones by transforming them into vibrant, walkable ecosystems that offer both economic opportunity and lifestyle amenities. The migration of urban dwellers to suburban regions, particularly following global health disruptions, has further fueled demand for localized commercial hubs that provide access to essential services without the need for long commutes.

Municipal governments are actively revising zoning laws and incentivizing transit-oriented developments to support this evolution, while investors are recognizing the higher rental yield potential and resilience of mixed-use portfolios compared to traditional single-purpose properties. Technological integration, energy efficiency, and sustainability features are being embedded into these projects to align with environmental and smart-city initiatives, thereby enhancing long-term asset value. Mixed-use projects are also mitigating risks associated with vacancy and economic downturns, as their diverse tenant base allows developers to maintain occupancy and revenue stability. This trend is expected to continue reshaping the North America commercial real estate landscape by enabling adaptable, inclusive, and economically resilient built environments that cater to changing societal dynamics.

Green Building Adoption and Environmental Certifications Gaining Investment Priority

Sustainability and environmental stewardship are becoming central pillars of investment strategy within the North America commercial real estate market, as stakeholders increasingly align their decisions with long-term climate goals and regulatory mandates. Developers, investors, and tenants are placing growing emphasis on green building practices that reduce carbon emissions, optimize energy and water consumption, and promote healthier indoor environments. As a result, properties that meet rigorous environmental certification standards such as Leadership in Energy and Environmental Design or WELL Building certifications are attracting premium rental rates and commanding higher market valuations. Institutional investors, in particular, are using environmental performance indicators to screen assets and allocate capital toward environmentally sustainable portfolios that meet environmental, social, and governance criteria.

Local governments across the region are implementing energy benchmarking regulations, carbon taxes, and incentive programs to accelerate the adoption of sustainable construction and retrofitting practices. Tenants are also playing a critical role, as large corporations seek energy-efficient office spaces that contribute to their own sustainability reporting and carbon reduction targets. This demand is driving innovation in building materials, smart systems, and renewable energy integration, especially in new construction projects and major urban redevelopments. The result is a growing competitive advantage for real estate assets that demonstrate environmental leadership, positioning green buildings as the future standard of the North America commercial real estate market.

Digital Transformation of Asset Management and Tenant Experience

The digital transformation of commercial real estate operations is emerging as a pivotal trend in the North America commercial real estate market, reshaping how properties are managed, leased, and experienced by tenants. Property owners and asset managers are increasingly deploying advanced technologies such as Internet of Things-enabled sensors, artificial intelligence, and predictive analytics to enhance building performance, reduce operational costs, and ensure real-time decision-making. These innovations enable the remote monitoring of systems such as heating, ventilation, lighting, and security, which not only improves energy efficiency but also enables proactive maintenance and reduces downtime.

On the tenant side, digital tools are being integrated into customer experience platforms, providing occupants with access to mobile apps for lease management, booking shared amenities, and reporting issues in real time. Smart building systems are also enhancing workplace flexibility by offering touchless access control, personalized climate settings, and data-driven space utilization insights that support hybrid work models. For landlords, this shift offers a competitive edge by elevating tenant satisfaction, extending lease durations, and unlocking new revenue streams through technology services. Digital platforms for property marketing, virtual tours, and lease transactions are streamlining deal flow and expanding market reach to geographically dispersed investors and tenants. In a landscape where responsiveness and adaptability are becoming essential, the integration of digital solutions is set to redefine best practices in commercial real estate asset management and tenant engagement across North America.

Segmental Insights

Type Insights

Multi-Family segment dominated in the North America Commercial Real Estate Market in 2024 and is projected to maintain its lead throughout the forecast period due to sustained demand for high-density residential housing, evolving urban migration patterns, and shifting demographic preferences. The consistent growth of urban populations, combined with rising barriers to homeownership such as elevated property prices and stricter lending conditions, has reinforced the attractiveness of rental housing, particularly in metropolitan areas and rapidly developing suburban regions. Multi-family developments, including apartments, condominiums, and townhomes, have also benefited from a broad base of investor interest owing to their comparatively stable income streams, low vacancy rates, and capacity to generate recurring revenue even during economic downturns.

The integration of premium amenities, smart building technologies, and sustainability features within modern multi-family properties has contributed to increased tenant retention and property value appreciation. In cities experiencing strong employment growth, multi-family housing has served as a strategic solution to accommodate mobile and younger workforces who prioritize affordability, flexibility, and access to lifestyle amenities. Institutional investors and real estate investment trusts are increasingly channeling capital into multi-family portfolios due to their risk diversification potential and long-term capital growth prospects. Regulatory support through zoning changes and housing incentives has further bolstered new project pipelines.

Collectively, these factors underscore the central role of the multi-family segment in driving value, resiliency, and scale within the North America commercial real estate market. As urbanization accelerates and consumer behavior continues to evolve toward renting over ownership, the multi-family segment is expected to remain the most influential and sought-after component of the market.

Download Free Sample Report

Country Insights

Largest Country

In 2024, the United States continued to solidify its position as the dominant player in the North America Commercial Real Estate Market, driven by its expansive economic base, diverse real estate portfolio, and strong institutional investment activity. Major metropolitan regions such as New York City, Los Angeles, Dallas, and Chicago remained epicenters for large-scale office, retail, industrial, logistics, and multi-family developments. The robust demand for industrial and logistics spaces, fueled by e-commerce expansion and supply chain localization, significantly boosted capital inflows into warehousing and distribution center assets. Simultaneously, the resurgence of travel and tourism supported the recovery of the hospitality sector, while the growing population of remote and hybrid workers continued to shape the reconfiguration of office spaces across urban and suburban corridors.

The United States also led the way in green building adoption, technology integration, and the construction of mixed-use environments, aligning real estate developments with sustainability, energy efficiency, and evolving tenant expectations. Favorable financing conditions, mature capital markets, and proactive municipal policies further reinforced the United States' leadership in shaping trends and setting benchmarks for commercial real estate growth in the region. With a dynamic mix of public-private investment and a constantly evolving consumer landscape, the United States is expected to remain the cornerstone of North America's commercial real estate evolution.

Emerging Country

Canada is rapidly emerging as a key player in the North America commercial real estate market, supported by its stable economy, growing urban centers, and increasing foreign direct investment. Cities like Toronto, Vancouver, Calgary, and Montreal are experiencing a surge in commercial developments, particularly in the office, industrial, and multi-family segments. The expansion of e-commerce and the need for advanced logistics infrastructure have led to significant investments in warehouse and distribution spaces across Canadian provinces.

Canada’s commitment to sustainable building practices and its proactive urban planning policies have attracted both domestic and international investors seeking long-term growth opportunities. With a highly skilled workforce, steady population growth, and supportive regulatory frameworks, Canada is positioning itself as a strategic destination for real estate investment, making it a rising force in the evolving landscape of North America’s commercial real estate sector.

Recent Developments

• In January 2025, Goldman Sachs Group Inc.’s alternative investment arm, in partnership with Dalfen Industrial, acquired a USD 293 million portfolio of 21 logistics buildings from Blackstone Inc. The properties, spanning 2.1 million square feet across Las Vegas, Dallas, Cincinnati, and Pennsylvania, are 92% leased, with tenants including Amazon and Red Bull. This acquisition expands their portfolio to 94 buildings totaling 19 million square feet.
• In November 2024, The Walt Disney World Swan and Dolphin began its expansion, adding 120,000 square feet of event space to its existing meeting and convention area. This marks the first major expansion since 2003. The project, involving Tishman Realty, MetLife, Marriott International, and Walt Disney World Resort, will feature a two-story annex inspired by Michael Graves' original design. The expansion, part of a USD 275 million initiative, is expected to be completed in 2026.
• In November 2024, CBRE Group, Inc. and Brookfield Properties expanded their strategic partnership in Canada, launching "Brookfield Properties Operated by CBRE." This collaboration will provide comprehensive property management services across Brookfield’s office portfolio in Toronto and Calgary. It marks the first international expansion of CBRE's Property Management offering, focusing on operational consistency, sustainability, and enhanced tenant experience.
• In January 2024, Nuvama Asset Management and Cushman & Wakefield formed a 50:50 joint venture, Nuvama and Cushman & Wakefield Management Private Limited (NCW). The venture aims to offer comprehensive commercial real estate investment opportunities, initially focusing on India's high-growth markets. NCW plans to launch its first real estate fund, the PRIME Offices Fund, targeting INR 3000 crore for investments in prime office properties.

Key Market Players

• CBRE Group, Inc.
• Jones Lang Lasalle Incorporated
• Cushman & Wakefield plc
• Colliers International Group Inc.
• Brookfield Properties LLC
• Keller Williams Realty, Inc.
• Marcus & Millichap, Inc.
• Prologis, Inc.

Report Scope:

In this report, the North America Commercial Real Estate Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• North America Commercial Real Estate Market, By Type:

o   Offices

o   Retail

o   Industrial & Logistics

o   Multi-Family

o   Hospitality             

• North America Commercial Real Estate Market, By Business:

o   Sales

o   Rental

o   Lease              

• North America Commercial Real Estate Market, By Country:

o   United States

o   Canada

o   Mexico

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the North America Commercial Real Estate Market.

Available Customizations:

North America Commercial Real Estate Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

North America Commercial Real Estate Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at sales@techsciresearch.com