Office space is one of the most common types of commercial real estate and there is a wide variance in terms of rent and vacancy rates, depending on a variety of factors. Despite the high volume of real estate sold in the Asia Pacific region, the Americas and EMEA have the highest volume of office real estate sold worldwide. Central London is an especially popular location for office real estate, with 16.7 billion U.S. dollars in cross-border investments between 2017 and 2018. When it comes to renting office space, the two cities with the highest expected rent increase from 2018 to 2021 are the Australian cities Sydney and Melbourne, at 17.3 percent and 17.1 percent respectively.
Sales of industrial real estate in the Americas reached 85 billion U.S. dollars in 2018, more than twice the volume of any other world region. Industrial real estate includes factories/manufacturing plants, warehouses, and research and development facilities. The real estate investment manager Prologis was the top company in its category, managing around 38.3 billion euros in industrial property assets in 2018. A few other major players in that market are Goodman and Global Logistic Properties.
Retail property is another essential segment of commercial property. Though renting retail space is often very reasonable in most towns and cities, it can also be exorbitantly expensive depending on the location. For instance, the most expensive retail location worldwide in 2018 was Causeway Bay in Hong Kong, in which one square foot of retail space cost upwards of 2,671 U.S. dollars per year. New York’s Upper 5th Avenue came in second place, with annual rent amounting to around 2,250 U.S. dollars per square foot in 2018.