In 2025, Equinix was the largest data center real estate investment trust (REIT) in the United States by market capitalization. The market cap of Equinix measured ***** billion U.S. dollars, about ** billion U.S. dollars higher than the second largest REIT Digital Realty. Over the past years, several notable acquisitions of data center REITs took place, including Blackstone's acquisition of QTS, KKR's acquisition of CyrusOne, and American Tower's acquisition of CoreSite.

The US data center industry is experiencing robust growth, driven by the increasing adoption of cloud computing, big data analytics, and the expansion of 5G networks. The market, segmented by location (with key hotspots including Atlanta, Dallas, Northern Virginia, and Silicon Valley), data center size (ranging from small to massive hyperscale facilities), tier type, absorption rates, colocation type (hyperscale, retail, wholesale), and end-user verticals (BFSI, cloud, e-commerce, and others), presents diverse investment opportunities. While the exact market size for 2025 is not provided, based on industry reports suggesting a multi-billion dollar valuation and a significant CAGR (let's assume a conservative 8% for illustration), we can project a 2025 market size in the range of $80-100 billion. This growth is fueled by the continuous demand for increased processing power and storage capacity across various sectors. However, challenges such as rising energy costs, limited skilled labor, and stringent regulatory compliance requirements act as potential restraints. The ongoing expansion of hyperscale data centers, particularly in strategic locations with favorable energy costs and infrastructure, is a key trend shaping the market's trajectory. Competition among established players and new entrants is intense, demanding continuous innovation in infrastructure, security, and service offerings. The forecast period (2025-2033) anticipates sustained growth, with the CAGR likely to remain strong, albeit potentially moderating slightly due to market saturation in certain regions and increased competition. The focus will shift towards sustainable data center solutions, addressing environmental concerns and reducing operational costs. Geographic expansion into secondary markets and strategic partnerships are anticipated as key strategies for companies seeking to maintain a competitive edge. Factors such as government regulations promoting digital infrastructure investment and advancements in data center technologies, including AI-powered management and edge computing, will contribute to this sustained growth. A deep understanding of these market dynamics is crucial for investors and businesses operating within or considering entry into this dynamic sector. Recent developments include: February 2023: The expansion of Souther Telecom to its data center in Atlanta, Georgia, at 345 Courtland Street, was announced by H5 Data Centers, a colocation and wholesale data center operator. One of the top communication service providers in the southeast is Southern Telecom. Customers in Alabama, Georgia, Florida, and Mississippi will receive better service due to the expansion of this low-latency fiber optic network.December 2022: DigitalBridge Group, Inc. and IFM Investors announced completing their previously announced transaction in which funds affiliated with the investment management platform of DigitalBridge and an affiliate of IFM Investors acquired all outstanding common shares of Switch, Inc. for USD approximately USD 11 billion, including the repayment of outstanding debt.October 2022: Three additional data centers in Charlotte, Nashville, and Louisville have been made available to Flexential's cloud customers, according to the supplier of data center colocation, cloud computing, and connectivity. By the end of the year, clients will have access to more than 220MW of hybrid IT capacity spread across 40 data centers in 19 markets, which is well aligned with Flexential's 2022 ambition to add 33MW of new, sustainable data center development projects.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

In 2023 and the first half of 2024, the largest property sale in the data center real estate market in Europe was DATA4 Paris-Saclay in Paris. In April 2023, Brookfield bought the ****** square meter property from AXA for an undisclosed price. The most expensive sale was Digital Frankfurt I. The valuation of the site was *** million U.S. dollars and Digital Core REIT obtained **** percent from Digital Realty.

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Europe Data Center Market Size 2025-2029

The europe data center market size is forecast to increase by USD 411 billion at a CAGR of 29.7% between 2024 and 2029.

The European data center market is experiencing significant shifts driven by the increasing adoption of cloud services and the growing importance of data protection regulations. Businesses are increasingly turning to hybrid and multi-cloud environments to optimize their IT infrastructure and improve agility. This trend is expected to continue, as cloud services offer scalability, flexibility, and cost savings. However, the implementation of stringent data protection regulations, such as the General Data Protection Regulation (GDPR), poses a challenge for data center operators. Compliance with these regulations requires robust security measures and significant investments in technology and personnel. Another major challenge for the European data center market is the increasing threat of cyber attacks. With the growing amount of sensitive data being stored and processed in data centers, cyber security has become a top priority. Data centers must invest in advanced security solutions to protect against cyber threats and ensure the confidentiality, integrity, and availability of their clients' data. Despite these challenges, the European data center market offers significant opportunities for growth. Companies that can effectively navigate these challenges and provide secure, reliable, and cost-effective data center solutions will be well-positioned to capitalize on the growing demand for cloud services and data protection compliance.

What will be the size of the Europe Data Center Market during the forecast period?

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The European data center market is witnessing significant advancements, with the adoption of micro data centers and software-defined data centers (SDDCs) gaining traction. Data center investment continues to flow in, with Real Estate Investment Trusts (REITs) playing a pivotal role. Liquid cooling and immersion cooling are revolutionizing cooling systems, enhancing efficiency and reducing energy consumption. Data center innovation is at the forefront, with trends such as data center interoperability, compliance, and audit gaining importance. Hyperscale data centers and edge data centers are shaping the future of the industry, while data center orchestration is streamlining operations. Data center standards are evolving to address these trends, ensuring seamless integration and optimal performance.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. End-userMedium and small enterprisesLarge enterprisesComponentIT infrastructurePower managementCooling solutionsGeneral constructionOthersTypeHyperscaleRetailWholesaleSectorBFSICloudE-commerceGovernmentOthersGeographyEuropeFranceGermanyThe NetherlandsUK

By End-user Insights

The medium and small enterprises segment is estimated to witness significant growth during the forecast period.

The European data center market is experiencing significant growth due to the increasing adoption of artificial intelligence and IT outsourcing. As businesses increasingly rely on data to drive decision-making and remain competitive, there is a rising demand for advanced data center infrastructure. Cooling systems, fiber optic cables, server racks, and other essential components are in high demand. Data center services, including disaster recovery and business continuity solutions, are crucial for organizations seeking to ensure data availability and minimize downtime. Data analytics and machine learning are also driving demand for data center upgrades and expansions. Data center staffing and operations are becoming more complex, necessitating specialized skills and expertise. Uptime Institute's tier certification is a recognized standard for measuring a data center's reliability and performance. Energy efficiency and green data centers are becoming increasingly important, with providers investing in precision cooling and capacity planning to reduce energy consumption and carbon emissions. Data center design and optimization are also key areas of focus, with providers offering managed services and network switches to help businesses maximize their IT infrastructure's potential. Modular data centers and data center interconnection are also gaining popularity, enabling businesses to scale their operations and improve network connectivity. Data center construction and decommissioning are ongoing processes, with providers offering solutions for both new builds and

The Guangdong Data Center market exhibits robust growth potential, driven by the region's burgeoning digital economy and increasing demand for cloud services, big data analytics, and AI applications. A CAGR of 8.31% from 2019-2033 indicates a significant expansion, with the market size projected to reach substantial figures by 2033 (the exact figure requires more granular data on the 2019 market size to calculate precisely; however, given the CAGR and the growth drivers, it is reasonable to anticipate substantial market expansion). Key drivers include government initiatives promoting digital infrastructure development, the rapid growth of e-commerce and fintech industries, and the increasing adoption of 5G technology. The market is segmented by DC size (small to mega), tier type (Tier 1-4), absorption (utilized and non-utilized), colocation type (retail, wholesale, hyperscale), and end-user sectors (cloud & IT, media & entertainment, BFSI, etc.). The presence of major players like Princeton Digital Group, GDS, and Fujitsu indicates a competitive yet dynamic market landscape. Challenges might include land scarcity and energy costs in certain areas, requiring strategic planning by providers to optimize resource utilization. The strong presence of key players suggests a healthy level of competition, potentially leading to price optimization and service innovation for end users. The forecast period (2025-2033) is expected to witness even more significant growth as 5G networks mature and the adoption of cloud computing accelerates. While the specific market size for Guangdong in 2025 and beyond needs further data clarification, the trends suggest consistent expansion across all segments. The regional distribution will likely mirror the overall growth trends, with key areas within Guangdong benefiting disproportionately from investments in digital infrastructure. Strategic partnerships between data center providers and technology companies are likely to further stimulate market expansion. The non-utilized segment presents an opportunity for future growth as demand continues to rise. Understanding the specific growth rates for each segment (DC size, tier, absorption, etc.) and geographical location within Guangdong will be crucial for informed investment decisions and strategic planning. Recent developments include: June 2022: Kappel DC REIT acquired 2 data centers in the Guangdong region of China. The two data centers cost the company a total sum of RMB 1.38 billion. The strategic investment made by the company is anticipated to help the company's growth in the future, considering the swelling demand for data centers over the past few years., December 2021: China announced that Guangdong Province would move data centers undersea. The plan is to move a few of its data centers underwater to reduce energy usage. Moving the data center's underwaters is expected to cut the need for cooling infrastructures and save up to a third of the energy currently being used.. Notable trends are: Large data center facilities are anticipated to witness growth during the forecast period..

The Real Estate Investment Trust (REIT) industry has witnessed significant transformation with the surge of data center REITs as a crucial asset class. Demand for hyperscale and edge computing facilities has been propelled by advancements in technologies such as artificial intelligence (AI) and 5G, supported by industry giants like Digital Realty and Equinix. Office REITs are recovering, facilitated by up-cycling in 2024 because of more significant leasing activity and return-to-office mandates. Strategically placed office spaces in urban cores are seeing increased demand, boosting property valuations and lease renewals, instilling renewed investor confidence in REITs. Through the end of 2025, industry revenue climbed at a CAGR of 0.9% to $243.7 billion, including a 4.4% gain in 2025 alone, when profit will reach 23.5%. The REIT industry has also seen marked consolidation activity. Despite elevated interest rates, publicly traded REITs raised $84.7 billion in 2024, signaling a strong appetite for acquisitions and displaying the benefits of having scope, scale and a robust operating platform. A strong PropTech adoption trend is evident, with AI, IoT and blockchain integrated into property operations to improve efficiency, reduce costs and enhance tenant experiences. This drive toward innovation helps the industry to better navigate economic challenges like elevated interest rates and inflation. Through the end of 2030, the REIT industry is expected to see favorable developments. Interest rates are expected to moderate over the next five years, easing borrowing costs for REITs and positively affecting their acquisitions and development strategies. Demand for healthcare-related properties will strengthen because of an aging US population and healthcare REIT's position as a resilient sector. The importance of data centers as a REIT asset class will gain, driven by the continuous advancements in AI and increased data operation transfers to the cloud. With an environment conducive to mergers and acquisitions, consolidation will continue, creating fewer but more substantial REITs that are better armed to navigate economic uncertainties and capitalize on sector-specific tailwinds. Industry revenue will climb at a CAGR of 1.6% to $264.0 billion through the end of 2030.

The Guangdong Data Center Market is projected to reach a value of USD XX million by 2033, expanding at a CAGR of 8.31%. The market growth is primarily driven by the increasing demand for data center services from cloud and IT service providers, as well as the government and telecom industry. Additionally, the growing adoption of cloud computing, artificial intelligence (AI), and the Internet of Things (IoT) is further fueling the demand for data center services in the region. Key trends in the Guangdong Data Center Market include the increasing focus on energy efficiency, the adoption of prefabricated data centers, and the growing popularity of hyperscale data centers. The market is expected to witness the entry of new players, as well as consolidation among the existing players. Moreover, the government's supportive policies and the development of smart cities in the region are expected to provide further impetus to market growth. Recent developments include: June 2022: Kappel DC REIT acquired 2 data centers in the Guangdong region of China. The two data centers cost the company a total sum of RMB 1.38 billion. The strategic investment made by the company is anticipated to help the company's growth in the future, considering the swelling demand for data centers over the past few years., December 2021: China announced that Guangdong Province would move data centers undersea. The plan is to move a few of its data centers underwater to reduce energy usage. Moving the data center's underwaters is expected to cut the need for cooling infrastructures and save up to a third of the energy currently being used.. Key drivers for this market are: Ageing Infrastructure and Increasing Need for Maintenance, Technological Advancements Drive the Market Growth; Innovation in Materials, Design, and Production Methods. Potential restraints include: High Equipment Cost Challenge the Market. Notable trends are: Large data center facilities are anticipated to witness growth during the forecast period..

Real Estate Investment Trust (REIT) Market Outlook

According to our latest research, the global Real Estate Investment Trust (REIT) market size reached USD 2.1 trillion in 2024, driven by expanding investor participation and a robust appetite for diversified real estate assets. The market is poised to grow at a CAGR of 7.2% from 2025 to 2033, with the total market size anticipated to surpass USD 4.03 trillion by 2033. This notable growth trajectory is underpinned by the increasing demand for yield-generating investments, regulatory support for REIT structures, and the rising trend of urbanization and infrastructure development worldwide. As per our latest research, the REIT market continues to evolve, offering investors an attractive blend of liquidity, transparency, and access to a diversified portfolio of real estate assets across various sectors and geographies.

A primary growth factor for the REIT market is the persistent search for stable income streams among global investors, particularly in a low-interest-rate environment. As traditional fixed-income instruments offer diminishing returns, REITs present a compelling alternative due to their mandated dividend distributions and potential for capital appreciation. This has led to increased allocations from both institutional and retail investors seeking steady cash flows and inflation-hedged assets. Furthermore, the evolving regulatory landscape in key markets such as the United States, Europe, and parts of Asia has fostered a favorable environment for REIT formation and expansion, making them a mainstream investment vehicle. The transparency, liquidity, and professional management provided by REITs have further cemented their position as a preferred choice for portfolio diversification.

Another significant driver for the global Real Estate Investment Trust market is the rapid urbanization and infrastructure development occurring in emerging economies. As urban populations swell, there is a corresponding surge in demand for residential, commercial, and industrial properties. REITs are well-positioned to capitalize on these trends by pooling capital to invest in large-scale, income-generating real estate projects that might otherwise be inaccessible to individual investors. Additionally, the growing sophistication of financial markets in countries like India, China, and Brazil has facilitated the listing and trading of REITs, further broadening the investor base. The increasing integration of technology, such as proptech solutions and digital platforms, has also streamlined REIT management and investor engagement, enhancing operational efficiency and accessibility.

The diversification of property types within REIT portfolios is another crucial growth factor. Beyond traditional segments like office and retail, REITs are increasingly investing in alternative asset classes such as data centers, logistics facilities, healthcare properties, and student housing. This diversification not only mitigates risk but also taps into high-growth sectors driven by evolving consumer behaviors and technological advancements. For instance, the rise of e-commerce has spurred demand for logistics and industrial REITs, while demographic shifts and healthcare needs have bolstered the appeal of healthcare-related REITs. This strategic expansion into niche sectors enables REITs to capture new revenue streams and sustain long-term growth, appealing to a wider range of investors with varying risk appetites.

Regionally, North America remains the dominant market for REITs, accounting for over 55% of global assets in 2024, with the United States leading in both market capitalization and regulatory maturity. Europe and Asia Pacific are experiencing accelerated growth, buoyed by regulatory reforms, increased cross-border investments, and the proliferation of listed REITs. The Asia Pacific region, in particular, is witnessing a surge in REIT listings, supported by government initiatives and rising demand for institutional-grade real estate. Meanwhile, Latin America and the Middle East & Africa are emerging markets with significant untapped potential, driven by urbanization, infrastructure development, and a growing investor base. The regional outlook for the REIT market is highly positive, with each geography contributing distinct growth drivers and opportunities.

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REIT Market Size 2025-2029

The reit market size is forecast to increase by USD 372.8 billion, at a CAGR of 3% between 2024 and 2029.

The market is experiencing significant growth driven by the increasing global demand for warehousing and storage facilities. This trend is fueled by the e-commerce sector's continued expansion, leading to an increased need for efficient logistics and distribution networks. An emerging trend in the market is the rise of self-storage as a service, offering investors attractive returns and catering to the growing consumer preference for flexible and convenient storage solutions. However, the market faces challenges as well. Vertical integration by e-commerce companies poses a threat to the industry, as these companies increasingly control the entire supply chain from production to delivery, potentially reducing the need for third-party logistics and storage providers. Additionally, regulatory changes and economic uncertainties can impact REITs' profitability and investor confidence. Companies seeking to capitalize on market opportunities and navigate challenges effectively must stay informed of these trends and adapt to the evolving landscape.

What will be the Size of the REIT Market during the forecast period?

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Request Free SampleThe market continues to evolve, with various sectors such as retail, industrial, and commercial real estate experiencing dynamic shifts. Family offices, pension funds, high-net-worth individuals, and sovereign wealth funds increasingly invest in this asset class, seeking diversification and stable returns. Market volatility, driven by economic cycles and interest rate fluctuations, influences investment strategies. Artificial intelligence and property technology are transforming the industry, with data analytics and digital platforms streamlining property management, investment, and appraisal processes. Multifamily housing and single-family homes remain popular choices due to their rental income potential and capital appreciation opportunities. Property taxes, inflation risk, and maintenance costs are essential considerations for investors, requiring effective risk management strategies. Net operating income, return on equity, and occupancy rates are critical performance metrics. Regulatory environment and property regulations also impact the market, influencing capitalization rates and shareholder value. Institutional investors explore equity and debt financing, real estate brokerage, and securities offerings to capitalize on opportunities. Property investment platforms, real estate syndications, and property management companies facilitate access to diverse offerings. Green building standards and sustainable development are gaining traction, attracting socially responsible investors. The ongoing digital transformation of the real estate sector, including smart buildings and hybrid REITs, offers new investment opportunities and challenges. Investors must stay informed of market trends and adapt their strategies accordingly.

How is this REIT Industry segmented?

The reit industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeIndustrialCommercialResidentialApplicationWarehouses and communication centersSelf-storage facilities and data centersOthersProduct TypeTriple netDouble netModified gross leaseFull servicePercentageGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACChinaIndiaJapanSingaporeRest of World (ROW).

By Type Insights

The industrial segment is estimated to witness significant growth during the forecast period.The retail and industrial real estate sectors dominate the market, with industrial real estate leading in 2024. The industrial segment's growth is driven by the increasing demand for warehousing space due to the surge in e-commerce and online sales during the COVID-19 pandemic. Supply chain disruptions have compelled companies to lease more warehouse space to store additional inventory, leading to increased occupancy and rental rates. Furthermore, the proximity of fulfillment centers to metropolitan areas caters to the growing number of online consumers. This trend will continue to fuel the expansion of industrial REITs, offering significant growth opportunities for the market. Asset management companies, pension funds, and high-net-worth individuals are increasingly investing in REITs for their attractive dividend yields and potential for capital appreciation. Private equity firms and family offices are also active players in the market, providing equity financing for REITs. Real estate agents and brokers facilitate transactions, while debt

The infrastructure real estate investment trust (REIT) Prologis was the largest U.S. REIT as of November 2024, with a market cap of almost *** billion U.S. dollars. In 2024, the price to funds from operation (P/FFO) ratio of Prologis was estimated at *****, with 2025 witnessing a slight decline to *****. The REITs sector has grown substantially, with the market cap reaching a record high in 2021. After a difficult year of negative returns in 2022, the year-to-date total returns for all property segments returned to positive grounds in 2023.

The Commercial Real Estate (CRE) industry is exhibiting significant variations across markets, with persistently high office vacancy rates juxtaposed against thriving prime office spaces. Hard hit by the widespread adoption of remote and hybrid work models, the overall office vacancy rate rose to 20.4% in Q4 2024 from the pre-pandemic rate of 16.8%. However, leasing volumes for prime office spaces are set to climb, providing opportunities for seasoned investors. On the other hand, the multifamily sector is gaining from a prominent move towards renting, primarily driven by housing affordability concerns and changing lifestyle preferences. This has increased demand for multifamily properties and opportunities to convert underutilized properties, such as offices, into residential rentals. The industrial real estate segment is also evolving, with the boom in e-commerce necessitating the development of strategically located warehouses for quick fulfillment and last-mile delivery. Industry revenue has gained at a CAGR of 0.8% to reach $1.4 trillion through the end of 2025, including a 0.4% climb in 2025 alone. The industry is grappling with multiple challenges, including high interest rates, wide buyer-seller expectation gaps and significant disparities in demand across different geographies and asset types. The Federal Reserve's persistent high-interest-rate environment creates refinancing hurdles for properties purchased during the low-rate period of 2020-2021. Because of remote working trends, office delinquency rates are predicted to climb from 11.0% in late 2024 to 14.0% by 2026, leading to a job market increasingly concentrated in certain urban centers. Through the end of 2030, the CRE industry is expected to stabilize as the construction pipeline shrinks, reducing new supply and, in turn, rebalancing supply and demand dynamics. With this adjustment, occupancy rates are likely to improve, and rents may observe gradual growth. The data center segment is set to witness accelerating demand propelled by the rapid expansion of artificial intelligence, cloud computing and the Internet of Things. Likewise, mixed-use properties are poised to gain popularity, driven by the growing appeal of flexible spaces that accommodate diverse businesses and residents. This new demand, coupled with the retiring baby boomer generation's preference for leisure-centric locales, is expected to push the transformation of traditional shopping plazas towards destination centers, offering continued opportunities for savvy CRE investors. Industry revenue will expand at a CAGR of 1.9% to reach $1.6 trillion in 2030.

The green lease market is experiencing robust growth, driven by increasing corporate sustainability initiatives and heightened awareness of environmental, social, and governance (ESG) factors. The market, while currently experiencing a period of rapid expansion, shows signs of continued growth through 2033. While precise market sizing data isn't provided, considering the involvement of major real estate investment trusts (REITs) like Boston Properties, Brandywine, and others, along with the increasing adoption of green building practices, a reasonable estimation for the 2025 market size could be in the range of $50 billion. A compound annual growth rate (CAGR) of 8% appears plausible based on current industry trends and government incentives promoting sustainable building practices. This would mean the market is projected to surpass $100 billion by 2033. Key drivers include tenant demand for energy-efficient and environmentally friendly spaces, growing investor interest in sustainable real estate, and regulatory pressures pushing for greener building codes. Trends show a move towards holistic sustainability measures encompassing energy efficiency, water conservation, waste reduction, and improved indoor air quality. Potential restraints include the upfront costs associated with green building certifications and retrofits, as well as the complexities of measuring and verifying sustainability performance. However, these challenges are increasingly being offset by long-term cost savings, improved tenant attraction and retention, and enhanced brand reputation. The segmentations within the green lease market are likely diverse, including building types (office, industrial, retail), certification levels (LEED, BREEAM, etc.), and geographical locations. The significant participation of companies like Digital Realty (data centers) and STAG Industrial (industrial properties) indicates a broader application than just office spaces. Geographical data would be crucial to pinpoint regions experiencing the strongest growth. However, based on the presence of major players in North America and Europe, these are likely the largest market segments. The forecast period (2025-2033) presents a significant opportunity for investors and developers committed to sustainability, with consistent growth projected throughout. The market's maturity will likely see innovative financing models and technological advancements further accelerating its expansion.

Shopping mall management servicers continue to endure amid favorable trends in the commercial real estate market and niche shopping mall demand from older-aged customers. Despite sharp volatility amid inflationary spikes in 2022 and the continued impact of elevated interest rates on retailers’ balance sheets, shopping malls continue to be a reliable outlet for in-person shoppers. The rebound in macroeconomic conditions and continued acceleration of disposable income following a sharp 6.2% decline in 2022 provided greater flexibility for customers to resume in-person activities and brick-and-mortar retail shopping. Higher rental costs of commercial spaces hampered smaller retail clients, but also boosted collective rental and property management fee income, particularly within lucrative metropolitan areas like Miami and New York. However, national growth was dampened by a growing popularity of online-based retailers such as Amazon, causing many customers to pivot toward e-commerce channels. Revenue grew at a CAGR of 1.0% to an estimated $24.7 billion over the past five years, including an estimated 0.3% boost in 2025 alone. As e-commerce services expanded nationally, foot traffic at shopping malls continued to slow down. Nonetheless, this slowdown was dampened, as shopping mall developers transformed shopping malls by adding an experiential factor, such as cinemas, restaurants and playgrounds. Despite the threat of falling retail leasing, shopping mall managers still generate a growing proportion of revenue from the rental of other commercial spaces. Elevated interest rates, which sit at 4.3% as of May 2025, also significantly harmed management companies by curtailing smaller retailers’ disposable incomes while making maintenance costs more expensive for existing facilities. Larger companies with more robust mall facilities were forced to pay more for upkeep and new modernization projects, causing profit to tumble. Moving forward, shopping mall management companies will benefit from economic stabilization and anticipated relief with slumping interest rates. Nonetheless, the significant rise of online shopping will persistently drive many brick-and-mortar retailers out of malls, reducing the number of potential tenants for existing management companies. However, as shopping mall managers put more effort into diversifying their customer portfolio away from sole retail and department stores, demand for shopping malls will remain reliant on the type of experiential facilities offered. Larger companies, such as Kimco Realty Corp., will also prioritize strategic acquisitions to target growing regional markets and expand their retail footprint. Revenue is expected to inch upward at a CAGR of 0.6% to an estimated $25.4 billion through the end of 2030.

Simon Property Group, Brookfield Properties, and SITE Centers Corp were the largest shopping mall property managers in the United States in 2021. The three companies managed over *** million square feet of leasable area. Besides being the biggest shopping mall manager, Simon Property was the largest retail real estate investment trust in the United States.