There are many factors that influence the development of the commercial real estate sector: By definition, commercial real estate is closely connected to the economy and the performance of different sectors. There are various types of companies operating in the sector, such as real estate investors, developers, brokers, managers, and media portals, all facing different challenges and opportunities as industry trends evolve. During the coronavirus pandemic, the need for social distancing led to offices worldwide transitioning to a hybrid working model and demand for office space falling. The boost in e-commerce spending in many countries, on the other hand, resulted in the need for more warehouses, fulfillment centers, and the growth of the industry and logistics real estate sector which facilitates it. Some of the most important themes in the future of the industry are the increasing importance of technological innovation and environmental, social, and governance sustainability (ESG).
Commercial real estate has been enjoying a high level of investor interest in recent years and has earned its place as a core asset in the portfolio of institutional investors. Globally, the commercial real estate market was worth approximately 34 trillion U.S. dollars in 2021 – almost twice the size of China’s economy. With one-third of the estimated global market size, the Asia Pacific region was the largest commercial real estate market.
Compared to a decade ago, the popularity of residential and logistics real estate has increased notably among global investors. Both sectors have proved to be especially resilient during the pandemic and have enjoyed high demand and rental growth. In bigger cities where space is scarce and house prices too high, demand for multifamily or build-to-rent properties is as good as guaranteed.
Like in many other industries, the importance of environmental, social, and governance (ESG) sustainability in commercial real estate has been growing in recent years. ESG has many benefits for investors, such as enhancing a company’s brand and reputation, attracting and retaining clients, and meeting internal company needs. Besides energy and waste management, industry experts outlined green buildings certification and mitigating carbon footprint as the ESG criteria with highest priority.
Commercial real estate brokerage firms are companies that sell commercial properties. Combined, the top five brokerage firms worldwide registered almost 700 billion U.S. dollars in transaction volume in 2021, with CBRE leading the ranking as the biggest commercial property broker worldwide. Apart from brokerage firms, there are other types of companies such as real estate investment trusts (REITs), and real estate asset managers.
The broad definition of commercial real estate includes property that has been built for business purposes. In this section, Statista provides the most relevant and up to date data on the commercial real estate sector and its main subsectors: office, retail, industrial and logistic, and hospitality. Additionally, Statista covers alternative commercial properties such as multifamily, senior, and student housing.