Commercial Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Commercial Real Estate Market Size Report is Segmented by Property Type (Offices, Retail, Logistics and More), by Business Model (Sales, Rental), by End-User (Individuals / Households, Corporates & SMEs and More) and by Region (North America, South America, Europe, Asia-Pacific & Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Commercial Real Estate Market Size and Share

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Commercial Real Estate Market Analysis by Mordor Intelligence

The global commercial real estate market holds a value of USD 6.22 trillion in 2025 and is forecast to reach USD 8.29 trillion by 2030, registering a 5.91% CAGR during the period. This growth reflects the rising convergence of property investment with technology infrastructure, especially data-center and logistics assets that support digital commerce. Capital keeps flowing from sovereign wealth and pension funds—over USD 180 billion each year—into income-producing buildings as investors rotate away from volatile equities. Demand remains buoyant for mixed-use communities, transit-served sites, and ESG-ready facilities that balance resilience with sustainability. Structural headwinds such as hybrid work patterns, construction-cost inflation, and insurance premiums tied to climate risk are encouraging adaptive-reuse projects and smarter asset-management technology, making the commercial real estate market more efficient and transparent.

Key Report Takeaways

  • By property type, offices led with 34% of commercial real estate market share in 2024, whereas logistics & industrial assets are set to expand fastest at a 6.21% CAGR to 2030.
  • By business model, sales transactions accounted for 68% revenue in 2024; the rental model is projected to grow most rapidly at a 6.39% CAGR through 2030.
  • By end-user, corporates & SMEs contributed 59% demand in 2024 and are advancing at a 6.15% CAGR, reflecting workplace optimization needs.
  • By region, Asia-Pacific captured 32% revenue in 2024, while South America is expected to post the highest 6.26% CAGR to 2030.

Segment Analysis

By Property Type: Logistics Surge Reshapes Traditional Hierarchies

The offices segment held commercial real estate market share of 34% in 2024. Logistics and industrial assets are forecast to grow at a 6.21% CAGR. Amazon’s plan to power Oregon data centers with advanced nuclear technology underscores a convergence of logistics and energy infrastructure. Store-closure headwinds weigh on traditional retail, yet experiential formats and omnichannel pickup points open reuse pathways. Hotels rebound alongside tourism, while data centers crystalize into a high-power sub-class within commercial real estate market size metrics.

Mixed-use projects protect cash flow by layering residential, retail and workspace. Georgetown’s USD 16.5 million mill conversion into riverfront apartments plus retail illustrates value-add potential. Tokyo’s BLUE FRONT SHIBAURA twin towers reinforce premium for multi-purpose destinations. Industrial landlords embed solar and EV infrastructure to meet tenant ESG targets, strengthening resilience and positioning for higher rents inside the commercial real estate market.

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Note: Segment shares of all individual segments available upon report purchase

By Business Model: Rental Flexibility Gains Momentum

Sales transactions preserved 68% revenue in 2024, feeding portfolio-recycling demands of capital-intensive investors. Rental income streams are poised for a 6.39% CAGR, underlining corporate appetite for operating-expense over capital-expense commitments. Equity Residential’s portfolio logged 3% same-store revenue growth in 2024 and guides 2.25-3.25% for 2025, spotlighting healthy occupancy[3]Corporate Communications Team, “Fourth Quarter 2024 Results,” Equity Residential, finance.yahoo.com. Build-for-rent single-family communities, like Tricon’s Texas launches, attract households priced out of ownership.

Sale-leasebacks combine liquidity with operational control, evident in Hines’ USD 194 million DST for Cincinnati’s Rookwood center[4]Corporate Communications Team, “Successfully Completes USD 194 Million DST,” Hines, hines.com. Lease clauses now incorporate performance-based rent and sustainability metrics. As a result, the commercial real estate market size tied to rental structures widens.

Commercial Real Estate Market
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By End-User: Corporate Optimization Drives Demand

Corporates and SMEs accounted for 59% demand in 2024 and will grow at a 6.15% CAGR, a function of footprint consolidation paired with quality upgrades. Companies tailor workspaces for collaboration zones and smart-building sensors, reinforcing the technology layer embedded in the commercial real estate market.

SMEs flock to flexible centers that avoid long leases, while public agencies commission specialized education and health facilities. China’s designation of 15 new first-tier cities, including Chengdu and Hangzhou, expands domestic office and retail requirements. Senior-housing REITs ride demographic waves as baby boomers age, expanding a niche yet fast-growing slice of the overall commercial real estate market.

Geography Analysis

Asia-Pacific retained 32% of 2024 revenue, supported by urbanization and near-shoring. Tokyo’s Grade A rents rose for five consecutive quarters, and prime logistics equities posted 10.1% stock gains in Q1 2025. CBRE’s 2025 investor survey shows half of respondents plan heavier exposure to Australia, Korea, Singapore, Hong Kong and especially Tokyo. Chinese consumer caution tempers discretionary retail; nonetheless, Chengdu and Hangzhou’s upgraded status spur new mall and office starts. Australia’s warehouse premium-rent trajectory, at 5% year-on-year, underlines ongoing preference for automation-ready sheds.

South America hosts the fastest 6.26% CAGR through 2030, buoyed by infrastructure and commodity cycles. Mexico captured record USD 36 billion FDI in 2023 on supply-chain relocation, lifting industrial pre-leases near the United States. Brazil’s 2025 GDP is set for 2.4% growth, and social-commerce uptake via TikTok Shop requires extra fulfillment square footage. Cancún’s 14% house-price climb and 30% luxury-condo demand increase by 2027 mirror tourism-led appetite for mixed-use schemes. Argentina’s macro stabilization and Peru’s USD 3.6 billion port upgrades extend the industrial corridor, expanding commercial real estate market size for logistics developers.

Europe presents mixed signals. Germany’s residential-investment market is rebounding, while Austria saw prime rents break EUR 20/m² in three states due to undersupply. Private-equity outlook brightens across software and pharma clusters, improving real-estate exit timelines. France anticipates steadier 2025 volumes as logistics assets regain investor favor, though older offices still languish. Middle-East diversification injects capital into African and European portfolios: Saudi Arabia permitted foreign stakes in sacred-city REITs and Egypt green-lit a USD 1 billion hydrogen-powered skyscraper. Tokenized Dubai deals illustrate how fintech can redraw capital flows inside the commercial real estate market.

Commercial Real Estate Market
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Competitive Landscape

The commercial real estate market remains moderately fragmented; yet scale operators wield advantages in cost of capital and technology adoption. Blackstone channels USD 25 billion into AI-linked data-center campuses and closed a USD 23 billion ports platform, revealing appetite for long-duration infrastructure. Brookfield’s EUR-scale transactions such as the Swedish AI infrastructure pipeline further consolidate niche segments. Prologis retains leadership in logistics, while Simon Property Group commands marquee malls, showing how domain specialists still thrive.

Advisory firms CBRE, JLL and Cushman & Wakefield compete on prop-tech portals that integrate lease data, energy dashboards and valuation tools, enhancing stickiness with clients. BlackRock’s USD 3.2 billion Preqin acquisition extends data coverage across private-market real estate, widening analytics depth for multi-asset investors. Agile disruptors include build-for-rent players, AI platform providers and crypto-enabled brokers that facilitate fractional ownership in places like Dubai.

Geographic specialization persists: Nordic data-center clusters revolve around renewable grids; U.S. Sunbelt multifamily scales through institutional sponsors; and Latin-American industrial corridors flourish via near-shoring. This mosaic of strategies highlights the breadth of the commercial real estate market and signals future deal flow concentrating around technology, energy resilience and demographic shifts.

Commercial Real Estate Industry Leaders

  1. Brookfield Asset Management Inc.

  2. Prologis, Inc.

  3. WANDA Group

  4. Segro Plc

  5. Blackstone Real Estate Advisors LP

  6. *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments

  • June 2025: Brookfield unveiled a SEK 95 billion (USD 8.9 billion) initiative to expand AI infrastructure in Sweden, adding 450 MW of data-center capacity.
  • May 2025: Acuren and NV5 Global announced a USD 2 billion merger, creating a larger TIC-services platform that supports infrastructure and real-estate projects.
  • March 2025: BlackRock completed its USD 3.2 billion purchase of Preqin, enhancing private-market data coverage.
  • January 2025: Welltower agreed to acquire over two dozen senior-housing complexes from Affinity Living Communities for nearly USD 1 billion, doubling down on aging-demographic demand.

Table of Contents for Commercial Real Estate Industry Report

1. Introduction

  • 1.1 Study Assumptions & Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Commercial RE Buying Trends – Socio-Economic & Demographic Insights
  • 4.3 Rental Yield Analysis
  • 4.4 Capital-Market Penetration & REIT Presence
  • 4.5 Regulatory Outlook
  • 4.6 Technological Outlook
  • 4.7 Insights into Real-Estate Tech & Start-ups Active in the Segment
  • 4.8 Insights into Existing & Upcoming Projects
  • 4.9 Market Drivers
    • 4.9.1 Logistics-led demand spike from omnichannel retail
    • 4.9.2 Flight-to-quality upgrading of prime CBD offices
    • 4.9.3 Sovereign & pension-fund pivot toward income-producing CRE
    • 4.9.4 Rapid hyperscale & edge data-centre campus roll-outs
    • 4.9.5 Transit-oriented rezoning lifting mixed-use land values
    • 4.9.6 Generative-AI-driven site-selection boosting secondary markets
  • 4.10 Market Restraints
    • 4.10.1 Persistent hybrid-work dampening global office absorption
    • 4.10.2 Construction-material & financing-cost inflation squeezing yields
    • 4.10.3 ESG-driven obsolescence risk for legacy assets
    • 4.10.4 Heightened climate-insurance premia in coastal metros
  • 4.11 Value / Supply-Chain Analysis
    • 4.11.1 Overview
    • 4.11.2 Developers & Constructors – Key Quantitative & Qualitative Insights
    • 4.11.3 Brokers & Agents – Key Quantitative & Qualitative Insights
    • 4.11.4 Property-Management Companies – Key Quantitative & Qualitative Insights
    • 4.11.5 Valuation, Advisory & Other Services
    • 4.11.6 Building-Materials Procurement & Strategic Partnerships
    • 4.11.7 Profiles of Global Strategic Investors / Buyers
  • 4.12 Porter’s Five Forces
    • 4.12.1 Bargaining Power of Suppliers
    • 4.12.2 Bargaining Power of Buyers
    • 4.12.3 Threat of New Entrants
    • 4.12.4 Threat of Substitutes
    • 4.12.5 Intensity of Competitive Rivalry

5. Market Size & Growth Forecasts (Value)

  • 5.1 By Property Type
    • 5.1.1 Offices
    • 5.1.2 Retail
    • 5.1.3 Logistics
    • 5.1.4 Others (Industrial Parks, Hospitality, Mixed-Use)
  • 5.2 By Business Model
    • 5.2.1 Sales
    • 5.2.2 Rental
  • 5.3 By End-User
    • 5.3.1 Individuals / Households
    • 5.3.2 Corporates & SMEs
    • 5.3.3 Others (Institutions, Government, NGOs)
  • 5.4 By Region
    • 5.4.1 North America
    • 5.4.1.1 United States
    • 5.4.1.2 Canada
    • 5.4.1.3 Mexico
    • 5.4.2 South America
    • 5.4.2.1 Brazil
    • 5.4.2.2 Argentina
    • 5.4.2.3 Chile
    • 5.4.2.4 Rest of South America
    • 5.4.3 Europe
    • 5.4.3.1 Germany
    • 5.4.3.2 United Kingdom
    • 5.4.3.3 France
    • 5.4.3.4 Italy
    • 5.4.3.5 Spain
    • 5.4.3.6 Rest of Europe
    • 5.4.4 Asia-Pacific
    • 5.4.4.1 China
    • 5.4.4.2 India
    • 5.4.4.3 Japan
    • 5.4.4.4 South Korea
    • 5.4.4.5 Australia
    • 5.4.4.6 Rest of Asia-Pacific
    • 5.4.5 Middle East and Africa
    • 5.4.5.1 United Arab Emirates
    • 5.4.5.2 Saudi Arabia
    • 5.4.5.3 South Africa
    • 5.4.5.4 Nigeria
    • 5.4.5.5 Rest of Middle East and Africa

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles {(includes Global-level Overview, Market-level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)}
    • 6.4.1 Brookfield Asset Management
    • 6.4.2 Prologis Inc.
    • 6.4.3 Blackstone Real Estate (BREIT & BPP)
    • 6.4.4 Simon Property Group
    • 6.4.5 Link REIT
    • 6.4.6 Segro Plc
    • 6.4.7 Mitsubishi Estate Co.
    • 6.4.8 Unibail-Rodamco-Westfield
    • 6.4.9 Vonovia SE
    • 6.4.10 Gecina SA
    • 6.4.11 Boston Properties Inc.
    • 6.4.12 Alexandria Real Estate Equities
    • 6.4.13 Dexus
    • 6.4.14 Goodman Group
    • 6.4.15 China Vanke Co. (Commercial)
    • 6.4.16 Wanda Group
    • 6.4.17 CapitaLand Investment
    • 6.4.18 Mapletree Investments
    • 6.4.19 Ascendas REIT
    • 6.4.20 CBRE Group
    • 6.4.21 JLL
    • 6.4.22 Cushman & Wakefield
    • 6.4.23 Colliers International
    • 6.4.24 Knight Frank

7. Market Opportunities & Future Outlook

  • 7.1 White-Space & Unmet-Need Assessment
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Global Commercial Real Estate Market Report Scope

Commercial real estate (CRE) refers to property for business-related purposes or to provide a workspace rather than a living space. The report covers segmentation by Type (Offices, Retail, Industrial/Logistics, Multi-family, and Hospitality) and by Geography (Asia-Pacific, North America, Europe, Middle-East and Africa, and Latin America). The report offers commercial real estate market size and forecasts in value (USD billion) for all the above segments. The report also covers the impact of COVID-19 on the market.

By Property Type Offices
Retail
Logistics
Others (Industrial Parks, Hospitality, Mixed-Use)
By Business Model Sales
Rental
By End-User Individuals / Households
Corporates & SMEs
Others (Institutions, Government, NGOs)
By Region North America United States
Canada
Mexico
South America Brazil
Argentina
Chile
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Australia
Rest of Asia-Pacific
Middle East and Africa United Arab Emirates
Saudi Arabia
South Africa
Nigeria
Rest of Middle East and Africa
By Property Type
Offices
Retail
Logistics
Others (Industrial Parks, Hospitality, Mixed-Use)
By Business Model
Sales
Rental
By End-User
Individuals / Households
Corporates & SMEs
Others (Institutions, Government, NGOs)
By Region
North America United States
Canada
Mexico
South America Brazil
Argentina
Chile
Rest of South America
Europe Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific China
India
Japan
South Korea
Australia
Rest of Asia-Pacific
Middle East and Africa United Arab Emirates
Saudi Arabia
South Africa
Nigeria
Rest of Middle East and Africa
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Key Questions Answered in the Report

What is the current commercial real estate market size in 2025?

The commercial real estate market size stands at USD 6,223.55 billion for 2025.

Which segment is growing fastest within the commercial real estate market?

Logistics and industrial properties lead with a forecast 6.21% CAGR through 2030, driven by e-commerce and data-center expansions.

Why are rental models gaining traction over outright sales?

Corporations favor operational flexibility amid high interest rates, while institutional investors embrace steady rent cash flows, resulting in rental models advancing at a 6.39% CAGR.

Which region offers the highest growth rate?

South America tops the regional outlook with a 6.26% CAGR to 2030, supported by infrastructure investment and near-shoring trends.

How is ESG regulation affecting older buildings?

Stricter carbon-performance rules and rising insurance costs are accelerating retrofits; assets that fail to comply risk value erosion, especially in Europe and North America.

What role does artificial intelligence play in the commercial real estate market?

AI platforms streamline site selection, valuation and asset management, enabling investors of all sizes to identify secondary-market opportunities and optimize portfolios more efficiently.

Commercial Real Estate Market Report Snapshots