Retail properties had the highest capitalization rates in the United States in 2023, followed by offices. The cap rate for office real estate was **** percent in the fourth quarter of the year and was forecast to rise further to **** percent in 2024. Cap rates measure the expected rate of return on investment, and show the net operating income of a property as a percentage share of the current asset value. While a higher cap rate indicates a higher rate of return, it also suggests a higher risk. Why have cap rates increased? The increase in cap rates is a consequence of a repricing in the commercial real estate sector. According to the National NCREIF Property Return Index, prices for commercial real estate declined across all property types in 2023. Rental growth was slow during the same period, resulting in a negative annual return. The increase in cap rates reflects the increased risk in the investment environment. Pricing uncertainty in the commercial real estate sector Between 2014 and 2021, commercial property prices in the U.S. enjoyed steady growth. Access to credit with low interest rates facilitated economic growth and real estate investment. As inflation surged in the following two years, lending policy tightened. That had a significant effect on the sector. First, it worsened sentiment among occupiers. Second, it led to a decline in demand for commercial spaces and commercial real estate investment volumes. Uncertainty about the future development of interest rates and occupier demand further contributed to the repricing of real estate assets.

Dollar stores with single tenant net leases in the United States had an average cap rate of 7.34 percent as of the fourth quarter of 2024. That made them the property type with the second-highest cap rate. Conversely, convenience stores had a cap rate of 5.5 percent, the lowest among the property types observed. Triple net leases (NNN) are single tenant leases, where in addition to rent and utilities, the tenant is responsible for the additional property expenses, including taxes, insurance, and maintenance. These leases are common for office, retail, industrial, and logistics properties.

Cap rates for commercial real estate in Brazil rose for industrial and office properties in the fist quarter of 2023. Retail real estate had the lowest cap rate of 6.14 percent in that quarter, down from 6.31 percent the quarter before. The capitalization rate measures the rate of return on commercial properties and is calculated by dividing the net operating income of a property by its asset value. While a higher rate might promise higher return, it is also an indication of a riskier asset.

As of March 2025, grade A offices in core locations in Bengaluru, India, had a median cap rate of around *** percent. In comparison, the median cap rate of grade A offices in core locations in Taipei, Taiwan, was around *** percent as of March 2025.

Commercial valuation data collected and maintained by the Cook County Assessor's Office, from 2021 to present. The office uses this data primarily for valuation and reporting. This dataset consolidates the individual Excel workbooks available on the Assessor's website into a single shared format. Properties are valued using similar valuation methods within each model group, per township, per year (in the year the township is reassessed). This dataset has been cleaned minimally, only enough to fit the source Excel workbooks together - because models are updated for each township in the year it is reassessed, users should expect inconsistencies within columns across time and townships. When working with Parcel Index Numbers (PINs) make sure to zero-pad them to 14 digits. Some datasets may lose leading zeros for PINs when downloaded. This data is property-level. Each 14-digit key PIN represents one commercial property. Commercial properties can and often do encompass multiple PINs. Additional notes: Current property class codes, their levels of assessment, and descriptions can be found on the Assessor's website. Note that class codes details can change across time. Data will be updated yearly, once the Assessor has finished mailing first pass values. If users need more up-to-date information they can access it through the Assessor's website. The Assessor's Office reassesses roughly one third of the county (a triad) each year. For commercial valuations, this means each year of data only contain the triad that was reassessed that year. Which triads and their constituent townships have been reassessed recently as well the year of their reassessment can be found in the Assessor's assessment calendar. One KeyPIN is one Commercial Entity. Each KeyPIN (entity) can be comprised of one single PIN (parcel), or multiple PINs as designated in the pins column. Additionally, each KeyPIN might have multiple rows if it is associated with different class codes or model groups. This can occur because many of Cook County's parcels have multiple class codes associated with them if they have multiple uses (such as residential and commercial). Users should not expect this data to be unique by any combination of available columns. Commercial properties are calculated by first determining a property’s use (office, retail, apartments, industrial, etc.), then the property is grouped with similar or like-kind property types. Next, income generated by the property such as rent or incidental income streams like parking or advertising signage is examined. Next, market-level vacancy based on _location and property type is examined. In addition, new construction that has not yet been leased is also considered. Finally, expenses such as property taxes, insurance, repair and maintenance costs, property management fees, and service expenditures for professional services are examined. Once a snapshot of a property’s income statement is captured based on market data, a standard valuation metric called a “capitalization rate” to convert income to value is applied. This data was used to produce initial valuations mailed to property owners. It does not incorporate any subsequent changes to a property’s class, characteristics, valuation, or assessed value from appeals.Township codes can be found in the legend of this map. For more information on the sourcing of attached data and the preparation of this datase

Vancouver had the lowest cap rate for industrial and logistics real estate across different Canadian markets in 2023. The capitalization rate measures the rate of return on commercial properties and is calculated by dividing the net operating income of a property by its asset value. While a higher rate might promise higher return, it is also an indication of a riskier asset. In the first quarter of the year, the average cap rate for class A and B industrial and logistics properties in Vancouver was 4.4 percent, while in Toronto, it stood at 5.06 percent.

Multifamily buildings had some of the lowest cap rates in Canada in the first quarter of 2023. For class A multifamily high rise buildings, investors could expect a capitalization rate of 4.04 percent, while for class AA downtown offices, the cap rate was 5.92 percent. The capitalization rate measures the rate of return on commercial properties and is calculated by dividing the net operating income of a property by its asset value. While a higher rate might promise higher return, it is also an indication of a riskier asset.

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Europe Commercial Real Estate Market Size 2025-2029

The europe commercial real estate market size is forecast to increase by USD 91.4 billion at a CAGR of 5.7% between 2024 and 2029.

The European commercial real estate market is experiencing significant growth, with increasing private investments fueling the expansion. This trend is driven by the region's robust economic conditions and the attractiveness of European markets to global investors. However, the market's growth trajectory is not without challenges. Rising interest rates pose a threat to potential investors, increasing the cost of borrowing and potentially reducing the appeal of commercial real estate investments. Additionally, regulatory hurdles and supply chain inconsistencies temper growth potential, necessitating careful planning and strategic navigation. Despite these challenges, opportunities abound for companies seeking to capitalize on the market's momentum. By staying informed of regulatory changes and supply chain developments, and maintaining a strong understanding of market trends, businesses can effectively navigate these challenges and seize growth opportunities in the European commercial real estate market.

What will be the size of the Europe Commercial Real Estate Market during the forecast period?

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In Europe's commercial real estate market, environmental impact assessments are increasingly important in property development, as sustainability becomes a key consideration. Real estate consulting firms provide valuable insights through property appraisals and predictive modeling, helping investors make informed decisions. Zoning regulations and planning permissions shape the landscape for asset management, while green certifications offer competitive advantages. Flexible workspaces, such as serviced and coworking spaces, are on the rise, catering to the changing needs of businesses. Energy audits and facility management ensure efficient operations, reducing costs and enhancing tenant satisfaction. Lease administration, tenant screening, and property valuations are essential components of effective asset management. Real estate analytics and property listings enable data-driven insights, driving transaction advisory services. Construction management and project management are crucial for delivering high-quality buildings, while virtual offices provide flexibility for remote teams. Property marketing and maintenance round out the essential services for successful real estate investments.

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. TypeRentalLeaseSalesEnd-userOfficesRetailLeisureOthersEnd-UserCorporateInvestmentGovernmentLocationUrbanSuburbanGeographyEuropeFranceGermanyItalyUK

By Type Insights

The rental segment is estimated to witness significant growth during the forecast period.

Commercial real estate in Europe encompasses various sectors, including rental, office buildings, industrial properties, residential, and retail spaces. Debt financing plays a crucial role in the market, with mortgage lending and equity financing facilitating property transactions. Logistics facilities are in high demand due to the growth of e-commerce, necessitating infrastructure development and urban planning. ESG factors are increasingly influencing investment decisions, with a focus on energy efficiency, green building, and property technology. Building Information Modeling (BIM) and big data analytics are transforming property management and due diligence. Occupancy rates and rental yields remain essential indicators of market health, with vacancy rates impacting property values. Urban regeneration and mixed-use developments are shaping cityscapes, while market volatility and real estate cycles pose risks. Artificial intelligence, the Internet of Things, and smart building technologies are revolutionizing property management and investment strategies. Despite the robust leasing market and rising rents, investment markets exhibit caution due to economic uncertainties and finance rates. Office rental growth, particularly in the UK, Benelux markets, and peripheral Europe, accelerated in the third quarter of 2022, increasing annual growth to over 5%. However, buyers remain hesitant to pay earlier price levels, impacting capital markets and property values. Risk management and portfolio diversification are essential strategies for navigating these evolving trends.

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The Rental segment was valued at USD billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challeng

Cap rates in the U.S. multifamily real estate sector have increased significantly since 2021, reflecting a rise in borrowing costs. In 2023, the average multifamily cap rate was **** percent, up **** percent in 2021, when it was at its low. By 2026, the average multifamily cap rate is forecast to decline slightly, to **** percent.

The cap rate for industrial and logistics real estate in the United States grew in 2023, after hitting a record-low in 2023. In the fourth quarter of 2023, the cap rate was **** percent and by the end of 2026, it was forecast to decline to **** percent. Cap rates measure the expected rate of return on investment properties and are calculated by dividing the net operating income of the property by the current asset value. While a higher cap rate indicates a higher rate of return, it is also associated with higher risk, such as declining property values.

the Report Covers Commercial Real Estate Market Analysis in Egypt. It is Segmented by Type (offices, Retail, Industrial and Logistics, Hospitality, and Multi-Family) and Key Cities (Cairo, Alexandria, Giza, Port Said, and the Rest of Egypt). the Report Offers Market Sizes and Forecasts in Value (USD) for all the Above Segments.

The Canadian commercial real estate market, valued at $77.09 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 7.59% from 2025 to 2033. This expansion is driven by several key factors. Firstly, Canada's strong economy and increasing population fuel demand for office, retail, and industrial spaces. Urbanization and population growth, particularly in major cities like Toronto, Vancouver, and Calgary, are significant contributors. Furthermore, ongoing investments in infrastructure and technological advancements are enhancing the attractiveness of commercial properties. The growth is segmented across various property types, with office spaces benefiting from a return to the workplace following the pandemic, and the industrial sector experiencing sustained growth fueled by e-commerce expansion and supply chain optimization initiatives. The hospitality sector is also poised for recovery, driven by increased tourism and business travel. However, the market is not without its challenges. Rising interest rates and inflation present significant headwinds, impacting construction costs and potentially reducing investment activity. Government regulations and environmental concerns related to sustainable development also influence market dynamics. Competition among developers and brokerage firms remains intense, impacting pricing and profitability. Despite these restraints, the long-term outlook for the Canadian commercial real estate market remains positive, driven by fundamental economic strengths and a growing population. Strategic investments in key areas, such as sustainable building practices and technological integrations, will be crucial for developers and investors to succeed in this evolving landscape. The diverse market segments, from office towers to industrial parks, each offer unique opportunities for growth and investment within the Canadian commercial real estate sector. Recent developments include: June 2023: Prologis, Inc. and Blackstone announced a definitive agreement for Prologis to acquire nearly 14 million square feet of industrial properties from opportunistic real estate funds affiliated with Blackstone for USD 3.1 billion, funded by cash. The acquisition price represents an approximately 4% cap rate in the first year and a 5.75% cap rate when adjusting to today's market rents., May 2023: An experiential real estate investment trust, VICI Properties Inc., announced that it had signed agreements to buy the real estate assets of Century Casinos, Inc.'s Century Downs Racetrack and Casino in Calgary, Alberta, Century Casino St. Albert in Edmonton, Alberta, and Century Casino St. Albert in St. Albert, Alberta, for a total purchase price of USD 164.7 million. This move demonstrates both their continued drive to grow abroad and their faith in the Canadian gaming industry. They are also excited to assist Century's asset monetization strategy, which will open up new opportunities for their cooperation.. Key drivers for this market are: Evolution of retail sector driving the market, Office spaces in Toronto and Vancouver are increasing. Potential restraints include: Evolution of retail sector driving the market, Office spaces in Toronto and Vancouver are increasing. Notable trends are: Evolution of retail sector driving the market.

Amid a worsening economic climate, the value of commercial real estate investment in the U.S. plummeted in 2023, with a mild increase in 2024. According to industry professionals, the biggest factors impacting the real estate industry in 2025 are the rising cost of finance, and declining capital availability. Development of commercial real estate cap rates in the U.S. Cap rates started to increase in 2022, reflecting a decline in property values. According to the forecast, cap rates for commercial real estate are expected to peak in 2024, followed by a steady decline. Cap rates measure the expected rate of return on investment properties and are calculated by dividing the net operating income of the property by the current asset value. While a higher cap rate indicates a higher rate of return, it is also associated with higher risk. Which property type has the best development prospects? In 2025, the development opportunities in the commercial real estate sector deemed the best for single-family real estate. Industrial and distribution real estate, including warehouses, factories, and big box distribution centers, was also ranked high.

Ares Commercial Real Estate reported $394M in Market Capitalization this April of 2024, considering the latest stock price and the number of outstanding shares.Data for Ares Commercial Real Estate | ACRE - Market Capitalization including historical, tables and charts were last updated by Trading Economics this last July in 2025.

Apollo Commercial Real Est Finance reported $1.37B in Market Capitalization this July of 2025, considering the latest stock price and the number of outstanding shares.Data for Apollo Commercial Real Est Finance | ARI - Market Capitalization including historical, tables and charts were last updated by Trading Economics this last July in 2025.

Taipei, Tokyo, and Osaka were the markets with the lowest cap rates for logistics real estate among the Asia-Pacific (APAC) markets listed. Traditional logistics facilities in Taipei had a market cap of 4.15 percent in the first quarter of 2024, while the market capitalization of institutional grade logistics even lower, at 3.5 percent. The cap rate measures the rate of return on commercial properties and is calculated by dividing the net operating income of a property by its asset value. While a higher rate might promise higher return, it is also an indication of a riskier asset.

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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?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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 Australia Commercial Real Estate Market Report is Segmented by Property Type (Offices, Retail and More), by Business Model (Rental and Sales), by End User (Individuals / Households, Corporates & SMEs and More) and by Region (New South Wales, Victoria, Queensland and More). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

In December 2023, the monthly capitalization rate of office real estate owned by real estate investment trusts (REITs) in the 23 wards of Tokyo was 3.36 percent. This represented an increase from a monthly cap rate of 3.28 percent in December 2022.

The average cap rate for single-tenant net lease (STNL) in the U.S. increased between 2022 and 2024. Cap rates show the rate of return investors expect from the investment property. In March 2024, the cap rate was 6.22 percent, up from 5.2 percent in April 2022.