Commercial Real Estate Market Report 2025

The commercial real estate market size has grown strongly in recent years. It will grow from $5.93 trillion in 2024 to $6.28 trillion in 2025 at a compound annual growth rate (CAGR) of 5.8%. The growth observed during the historic period can be attributed to rising urbanization, increased corporate demand for office spaces, higher infrastructure investments, growing foreign direct investments, and increased demand for industrial warehousing.

The commercial real estate market size is expected to strong growth in the next few years. It will grow to $7.77 trillion in 2029 at a compound annual growth rate (CAGR) of 5.5%. The growth projected for the forecast period can be linked to the expansion of flexible workspace culture, heightened interest in mixed-use developments, a stronger emphasis on sustainability and green buildings, increasing demand driven by e-commerce logistics, and growing investments in tier 2 and tier 3 cities. Key trends expected during the forecast period include technological advancements in property management platforms, innovations in smart building infrastructure, increased research and development in energy-efficient designs, investment in digital twins for real estate planning, and progress in AI-powered real estate 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 players 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 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in commercial real estate report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the commercial real estate market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the professional services sector, particularly in legal, consulting, architectural, and engineering domains. Higher costs for imported technology, software licenses, office equipment, and digital infrastructure have raised operational expenses for firms reliant on global tools and platforms. International consulting projects are facing delays or cost overruns due to increased travel expenses and restricted access to foreign-sourced data and tools. Additionally, clients in manufacturing, construction, and logistics, heavily affected by tariffs are cutting back on outsourced services, squeezing demand for professional expertise. As a result, service providers are reevaluating pricing structures, expanding domestic supplier relationships, and investing in AI-driven solutions to sustain profitability and client engagement amid economic uncertainty.

Commercial real estate refers to properties designated exclusively for business purposes and income generation. These properties are commonly bought, sold, or leased to generate returns through rental income or capital appreciation. Commercial real estate offers space for commercial activities while providing owners with rental income or potential capital gains.

The primary categories of commercial real estate include community businesses, commerce centers, and others. Community business properties consist of small-scale commercial units that typically serve the local neighborhood, such as retail shops, cafes, or service outlets. These properties are extensively used for both rental and sales and serve a range of end-users, including corporate clients, retail businesses, government entities, the hospitality sector, and more.

The commercial real estate market research report is one of a series of new reports that provides commercial real estate market statistics, including commercial real estate industry global market size, regional shares, competitors with a commercial real estate market share, detailed commercial real estate market segments, market trends and opportunities, and any further data you may need to thrive in the commercial real estate industry. This commercial real estate market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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