Commercial Real Estate Market Report 2026

The commercial real estate market size has grown strongly in recent years. It will grow from $6281.58 billion in 2025 to $6.63 trillion in 2026 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to urbanization trends across major economies, expansion of corporate office spaces, growth of organized retail infrastructure, rising institutional real estate investments, increasing preference for income-generating assets.

The commercial real estate market size is expected to see strong growth in the next few years. It will grow to $8178.04 billion in 2030 at a compound annual growth rate (CAGR) of 5.4%. The growth in the forecast period can be attributed to growing demand for green-certified properties, expansion of data-driven property management, rising adoption of proptech solutions, increasing foreign direct investment in commercial assets, evolution of hybrid work influencing space utilization. Major trends in the forecast period include increasing adoption of flexible workspace models, rising demand for sustainable commercial buildings, growing integration of smart building technologies, expansion of mixed-use commercial developments, enhanced focus on asset digitization and analytics.

The growing demand for construction activities is expected to drive the expansion of the commercial real estate market. Construction activities encompass the processes involved in building, repairing, or modifying structures such as buildings, roads, bridges, and other forms of infrastructure. This surge is largely driven by urbanization, as increasing population concentration in cities boosts the need for residential, commercial, and infrastructure development. These activities support commercial real estate by enabling the creation of new infrastructure and expanding the supply of available properties. They also stimulate economic growth by fulfilling the demand for office buildings, retail spaces, and mixed-use developments, thereby enhancing urban functionality and investment appeal. For instance, in April 2025, the United States Census Bureau reported that construction spending in 2024 reached $2.15 trillion, up from $2.02 trillion in 2023. As a result, the rising demand for construction activities is propelling the growth of the commercial real estate market.

Leading companies in the commercial real estate sector are prioritizing the development of advanced technologies, such as large language models, to automate various tasks and provide data-driven insights without requiring specific training for individual tasks. Large language models are sophisticated AI tools trained on vast text datasets to understand, interpret, and generate human-like responses with contextual accuracy. For example, in August 2023, Jones Lang LaSalle IP Inc., a U.S.-based real estate firm, introduced JLL GPT, the first large language model tailored for the commercial real estate industry. This tool is designed to support professionals by automating repetitive functions, delivering insights, and enhancing decision-making. JLL GPT utilizes proprietary commercial real estate data and industry expertise to generate accurate, real-time responses suited to the needs of investors, brokers, and property managers.

In January 2025, CBRE Group Inc., a U.S.-based real estate company, acquired Industrious LLC for $400 million. This acquisition aims to bolster CBRE’s role in the flexible workspace market, expand its offerings to enterprise clients, and tap into the increasing demand for hybrid and agile office solutions. Industrious LLC is a commercial real estate company based in the United States.

Major companies operating in the commercial real estate market are CBRE Group Inc., Jones Lang LaSalle Incorporated, BlackRock Inc., Cushman & Wakefield Plc, Brookfield Property Partners L.P., Prologis Inc., Unibail-Rodamco-Westfield SE, Savills Plc, Newmark Group Inc., Marcus & Millichap Inc., Bidwells LLP, Kennedy-Wilson Holdings Inc., Kidder Mathews Inc., Rastegar Property Company LLC, Transwestern Commercial Services LLC, Parkstone Companies LLC, Starboard Commercial Real Estate Inc., Sperry Commercial Global Affiliates LLC, Intersection CRE Inc., The Wiseman Company Inc.

North America was the largest region in the commercial real estate market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the commercial real estate market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the commercial real estate market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The commercial real estate market includes revenues earned by entities through property leasing, investment advisory, valuation services, project management, and facility management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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