In 2022, the volume of commercial real estate transactions reached *** billion U.S. dollars, up from *** billion U.S. dollars in 2020. One of the reasons for the surge was the pandemic and the release of pent-up demand as the economy reopened. A real estate transaction refers to the process of passing the rights in a property unit from the seller to the buyer in return for an agreed upon sum. Effect of 2007-2008 credit crisis The U.S. real estate market reached its peak in 2007, just before the 2007-2008 credit crisis when the property market collapsed. The value of commercial property returns dropped between 2007 and 2009. Since 2010, the market has steadily recovered, and the volume of transactions climbed until 2015, and has levelled out since then. Types of commercial real estate The change in overall transaction volume is most likely impacted by the type of commercial properties which are more attractive to investors in a particular period. For instance, the interest in multifamily housing investment opportunities went down in the same period that interest in hotel investment opportunities went up.

In recent years, the share of direct commercial real estate investment into the residential sector has been increasing globally. In 2007, ** percent of the investment transaction volume was invested in residential property, while in the first quarter of 2024, this share doubled, reaching ** percent. The share of office space investment, on the other hand, decreased from ** percent in 2007 to ** percent in the first quarter of 2024.

Global investment into commercial real estate has declined dramatically since 2021. In the fourth quarter of 2023, the value of commercial real estate investment transactions was estimated at *** billion U.S. dollars, down from *** billion U.S. dollars in the same quarter in 2021. The suppressed investment activity can be explained by the worsening economic conditions and higher mortgage rates, resulting in an overall cautious behavior among investors. The Americas contributed with the most investment, at *** billion U.S. dollars.

Sourced from the Q1 2025 US CRE Investment and Transaction Quarterly report , the following sortable table provides pricing metrics across ten major metropolitan statistical areas (MSAs).

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.

This statistic shows the leading commercial real estate brokers in the United States in 2017, by global transaction volume. The global leasing and investment sales transaction volume of JLL reached *** billion U.S. dollars in 2017.

The number of commercial real estate transactions in the UK plummented in 2020 due to the coronavirus pandemic, followed by a swift recovery in the following years. In 2024, the number of non-residential property sales over 40,000 British pounds completed amounted to *******. In the UK, England is responsible for the majority of completed non-residential property transactions.

Real Estate Brokerage Services Market Outlook

The global real estate brokerage services market size was valued at USD 210.3 billion in 2023 and is projected to reach USD 310.8 billion by 2032, growing at a compound annual growth rate (CAGR) of 4.3% during the forecast period. This growth is driven by several factors, including increasing urbanization, the rising number of property transactions, and the integration of advanced technologies in real estate brokerage services.

The growth of urban populations worldwide is one of the primary factors driving the real estate brokerage services market. As more people move to cities, the demand for residential and commercial properties increases, leading to a higher number of property transactions. This urbanization trend is particularly significant in developing countries, where rapid economic growth and migration to urban centers fuel the demand for real estate brokerage services. Consequently, the need for professional brokerage services to facilitate these transactions has surged, driving market expansion.

Another significant growth driver for the market is the increasing number of property transactions. As economies grow and consumer confidence improves, more individuals and corporations are investing in real estate. This trend is supported by favorable government policies, such as tax incentives and subsidies, which encourage real estate investments. Additionally, low-interest rates on mortgages have made property purchases more accessible to a broader audience, further boosting the demand for real estate brokerage services. As a result, the market is expected to experience sustained growth over the forecast period.

The integration of advanced technologies, such as artificial intelligence (AI), big data, and blockchain, in real estate brokerage services is also contributing to market growth. These technologies enable brokers to provide more efficient and personalized services to their clients. For instance, AI-powered tools can analyze vast amounts of data to identify potential property matches for clients, while blockchain technology ensures secure and transparent transactions. By adopting these innovations, real estate brokerage firms can enhance their service offerings and attract more clients, thereby driving market expansion.

In this evolving landscape, the role of an Information Broker Service is becoming increasingly significant. These services act as intermediaries that gather, analyze, and distribute data to support decision-making processes in the real estate sector. By leveraging vast amounts of information, brokers can provide clients with valuable insights into market trends, property valuations, and investment opportunities. The integration of information broker services enhances the ability of real estate firms to offer tailored solutions, thereby improving client satisfaction and driving business growth. As the demand for data-driven decision-making continues to rise, the importance of information broker services in the real estate industry is expected to grow, offering a competitive edge to firms that adopt these technologies.

The regional outlook for the real estate brokerage services market is diverse, with varying growth rates and trends across different regions. North America, particularly the United States, continues to dominate the market due to its well-established real estate sector and high property transaction volume. Meanwhile, the Asia Pacific region is experiencing rapid growth, driven by increasing urbanization and economic development in countries such as China and India. Europe is also witnessing steady growth, supported by a stable economy and favorable government policies. Latin America and the Middle East & Africa regions are expected to show moderate growth, with improving economic conditions and increasing foreign investments in real estate contributing to market expansion.

Service Type Analysis

The real estate brokerage services market is segmented into residential brokerage, commercial brokerage, industrial brokerage, and land brokerage. Residential brokerage occupies a significant market share due to the high volume of residential property transactions. The demand for residential properties is driven by factors such as population growth, urbanization, and increasing disposable incomes. Additionally, the trend of nuclear families and single-person households has led to a higher demand for individual residential units, further boosting the resid

The United States real estate brokerage market, valued at $197.33 billion in 2025, is projected to experience steady growth, driven primarily by a robust housing market, increasing urbanization, and the growing preference for professional real estate services. The market's Compound Annual Growth Rate (CAGR) of 2.10% from 2025 to 2033 indicates a consistent, albeit moderate, expansion. Key market segments include residential and non-residential properties, with sales and rental services as primary revenue streams. Major players such as Keller Williams, RE/MAX, and Coldwell Banker dominate the market, leveraging extensive networks and advanced technological tools to enhance client services. While competition is fierce, the market's growth is fueled by factors like rising home prices, increasing investor interest in real estate, and the continuing need for expert guidance in navigating complex real estate transactions. The market faces challenges such as fluctuating interest rates which can impact buyer affordability and economic downturns that can reduce both sales and rental activity, thereby influencing the overall market expansion. However, the long-term outlook remains positive, supported by the enduring demand for housing and the critical role of brokerage firms in facilitating real estate transactions. The increasing use of online platforms and proptech solutions is also expected to further shape the market landscape in the coming years. The segmentation by property type (residential and non-residential) and service type (sales and rental) provides valuable insights into market dynamics. Residential sales are likely to remain the largest segment, driven by demographic shifts and population growth. The non-residential segment, encompassing commercial properties, will likely experience growth influenced by business expansion and investment activities. The rental segment is expected to continue its growth, particularly in urban areas facing housing shortages. The competitive landscape features established national brands alongside smaller, localized firms. The success of individual firms will depend on their ability to adapt to technological advancements, offer specialized services, and build strong client relationships. Furthermore, government regulations and economic conditions will also continue to play a significant role in shaping the market's trajectory. Recent developments include: May 2024: Compass Inc., the leading residential real estate brokerage by sales volume in the United States, acquired Parks Real Estate, Tennessee's top residential real estate firm that boasts over 1,500 agents. Known for its strategic acquisitions and organic growth, Compass's collaboration with Parks Real Estate not only enriches its agent pool but also grants these agents access to Compass's cutting-edge technology and a vast national referral network., April 2024: Compass has finalized its acquisition of Latter & Blum, a prominent brokerage firm based in New Orleans. Latter & Blum, known for its strong foothold in Louisiana and other Gulf Coast metros, has now become a part of Compass. This strategic move not only solidifies Compass' presence in the region but also propels it to a significant market share, estimated at around 15% in New Orleans.. Key drivers for this market are: 4., Increasing Urbanization Driving the Market4.; Regulatory Environment Driving the market. Potential restraints include: 4., Increasing Urbanization Driving the Market4.; Regulatory Environment Driving the market. Notable trends are: Industrial Sector Leads Real Estate Absorption, Retail Tightens Vacancy Rates.

Graph and download economic data for Commercial Real Estate Prices for United States (COMREPUSQ159N) from Q1 2005 to Q3 2024 about real estate, commercial, rate, and USA.

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Commercial Real Estate Market Size 2025-2029

The commercial real estate market size is forecast to increase by USD 427.3 billion, at a CAGR of 4.6% between 2024 and 2029.

The market is experiencing significant growth, fueled by increasing marketing initiatives and the rising emphasis on remote work and online shopping. This trend is transforming the commercial real estate landscape, with a shift towards adaptive spaces that cater to the evolving needs of businesses and consumers. The increasing adoption of marketing strategies, such as digital marketing and experiential retail, is driving demand for commercial properties that can effectively showcase brands and create memorable customer experiences. Additionally, the shift towards remote work and online shopping is leading to a surge in demand for data centers, logistics facilities, and flexible office spaces.
However, this market is not without challenges. The rapid pace of technological advancements and changing consumer preferences pose significant obstacles for commercial real estate developers and investors. The need to adapt to these shifts and stay competitive requires a deep understanding of market trends and the ability to pivot quickly. Furthermore, regulatory changes and economic instability can also impact the market's growth trajectory. To capitalize on the opportunities and navigate the challenges effectively, companies must stay informed about the latest market trends and consumer preferences. Investing in technology and innovation, while also maintaining flexibility and adaptability, will be key to success in the evolving the market.

What will be the Size of the Commercial Real Estate 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.
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The market continues to evolve, with dynamic market activities unfolding across various sectors. Environmental impact assessments are increasingly crucial in property development, shaping the design and construction process. Tenant representation plays a pivotal role in securing suitable spaces for businesses, while 3D modeling facilitates effective space planning and data visualization. Due diligence is an ongoing process, ensuring compliance with legal and regulatory requirements. Property tax assessments, vacancy rates, and property management are essential components of commercial real estate investment strategies. Distressed properties present opportunities for joint ventures and strategic investments, while interior design and machine learning contribute to enhancing tenant experience and optimizing building performance.

Investment properties, industrial properties, and urban planning strategies benefit from big data analytics and virtual tours, enabling informed decision-making. Commercial mortgages and brokerage services facilitate the buying and selling of properties, while occupancy costs and building codes ensure operational efficiency and safety. The market is a complex, ever-changing landscape, with continuous market dynamics shaping its various sectors. From environmental impact assessments to tenant representation, property management, and investment strategies, the integration of various components is essential for success in this dynamic industry.

How is this Commercial Real Estate Industry segmented?

The commercial real estate 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.

End-user

  Offices
  Retail
  Leisure
  Others


Channel

  Rental
  Lease
  Sales


Transaction Type

  Commercial Leasing
  Property Sales
  Property Management


Service Type

  Brokerage Services
  Property Development
  Valuation Consulting
  Facilities Management


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By End-user Insights

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

The U.S. commercial real estate market is undergoing major shifts, particularly in the office segment, driven by flexible work models, evolving corporate needs, and technological advancements. Businesses now favor adaptable, tech-enabled spaces to attract talent, fueling demand for co-working hubs like Regus and WeWork. Industry leaders such as Google and Amazon are redefining office design to boost collaboration and satisfaction.

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The Offices segment was valued at USD 476.50 billion in 2019 and showed a gradual increase during th

The Scandinavian commercial property market, encompassing Denmark, Norway, and Sweden, presents a dynamic investment landscape characterized by a robust 7.41% CAGR (2019-2033). Key drivers include strong economic performance in the Nordic region, increasing urbanization leading to higher demand for office, retail, and residential spaces, and a growing logistics sector fueled by e-commerce expansion. Significant investment in sustainable and technologically advanced buildings further contributes to market growth. While the market enjoys considerable strength, potential restraints include fluctuations in global economic conditions, increasing construction costs, and potential regulatory changes affecting property development. The market is segmented by property type (offices, retail, industrial, logistics, multi-family, hospitality) and geography (Denmark, Norway, Sweden, with key cities like Oslo, Stockholm, and Copenhagen exhibiting high activity). Major players include developers like Vasakronan AB, Jeudan A/S, Citycon, and NREP (Logicenters), alongside significant real estate agencies such as CBRE, Europages, and Colliers International. The presence of smaller, innovative companies and startups also adds dynamism to the sector. The regional breakdown reveals that while the Nordics are the core market, international investment continues to play a role. The high CAGR suggests that the market will continue its upward trajectory, although potential economic downturns could moderate growth in specific years. Analysis of individual cities within each country is crucial for a granular understanding of market opportunities and risks. For example, Oslo's burgeoning tech scene might drive higher office demand, while Stockholm’s strong retail sector could impact shopping center valuations. Investors should carefully assess the specific sub-markets within the broader Scandinavian commercial property landscape to identify the most promising investment opportunities and effectively manage associated risks. A focus on sustainability and technological integration will likely be critical for success in this evolving market. Notable trends are: Increase in Transaction Volume in the Office Market of Scandinavian Countries.

The North American real estate brokerage market, valued at $227.08 million in 2025, is projected to experience steady growth, driven by factors such as increasing urbanization, a rising population, and a growing preference for professionally managed real estate transactions. The market's Compound Annual Growth Rate (CAGR) of 2.30% from 2025 to 2033 indicates a consistent, albeit moderate, expansion. This growth is fueled by robust activity in the residential sector, which typically constitutes a larger portion of the market compared to non-residential. Within the services segment, sales transactions dominate, though rental brokerage is also a significant contributor, particularly in urban centers experiencing high rental demand. Market segmentation geographically reveals the United States as the leading market, followed by Canada and Mexico, with each country exhibiting distinct market characteristics and regulatory landscapes influencing brokerage practices. Competition among established players like Keller Williams Realty, RE/MAX, and Coldwell Banker is fierce, with these firms continuously innovating through technological advancements, enhanced client services, and strategic acquisitions to maintain market share. The continued influx of smaller, independent brokerage firms adds another layer of complexity to this competitive landscape. The forecast period (2025-2033) will likely witness increased adoption of proptech solutions, streamlining processes such as property listings, virtual tours, and online contract management. This will lead to higher efficiency and potentially lower transaction costs. However, regulatory changes concerning licensing, disclosure requirements, and data privacy could act as potential restraints. Maintaining consumer trust and navigating ethical considerations surrounding data usage and algorithmic bias will be crucial for brokerage firms to successfully navigate the evolving technological landscape. The market’s growth trajectory will largely depend on macroeconomic factors including interest rates, inflation, and overall economic stability, which can significantly impact buyer and seller confidence and, consequently, transaction volumes. Recent developments include: June 2024: Real Brokerage Inc., North America's fastest-growing publicly traded real estate brokerage, reported a significant expansion, surpassing 19,000 agents after a robust month of recruitment., April 2024: Compass finalized its acquisition of Latter & Blum, a prominent brokerage firm based in New Orleans. Latter & Blum, known for its strong foothold in Louisiana and other Gulf Coast metros, has now become a part of Compass. This strategic move not only solidifies Compass' presence in the region but also propels it to a significant market share, estimated at around 15% in New Orleans.. Key drivers for this market are: 4., Increasing Urbanization Driving the Market4.; Regulatory Environment Driving the Market. Potential restraints include: 4., Increasing Urbanization Driving the Market4.; Regulatory Environment Driving the Market. Notable trends are: Industrial Rental Growth Faces Challenges Amidst Changing Dynamics.

Commercial Real Estate Prices for United States was -10.47280 % Chg. from Yr. Ago in July of 2024, according to the United States Federal Reserve. Historically, Commercial Real Estate Prices for United States reached a record high of 16.13922 in April of 2006 and a record low of -30.24535 in October of 2009. Trading Economics provides the current actual value, an historical data chart and related indicators for Commercial Real Estate Prices for United States - last updated from the United States Federal Reserve on July of 2025.

Germany, the UK, and France had the largest commercial real estate markets in Europe in 2024, amounting to almost half of the European market. The market size is based on the value of high-quality real estate as a percentage of each country’s GDP. In Germany, the market size of commercial real estate was about 1.9 trillion U.S. dollars.  Investment in commercial real estate Although the United Kingdom had a smaller market size than Germany, it recorded a higher commercial real estate investment volume in 2023. Due to the unfavorable economic climate, transaction activity declined markedly that year, affecting the whole region. Many countries, such as Germany, Sweden, and Italy, saw investment plummet by approximately 50 percent. Most popular European cities among real estate investors Industry experts consider a broad range of factors when allocating capital to real estate assets. Transport connectivity and a city’s economic performance, however, stood out as most important, according to a 2023 survey. Unsurprisingly, the capital cities of the UK, Spain, and France ranked as the European cities with the highest real estate prospects in 2025.

The Brazil Commercial Real Estate Market is Segmented by Property Type (Offices, Retail, Logistics, Others (industrial Real Estate, Hospitality Real Estate)), by Business Model (Sales and Rental), by End-User (Individuals / Households, Corporates & SMEs, Others) and and Cities (São Paulo, Rio De Janeiro, and Rest of Brazil). The Market Sizes and Forecasts are Provided in Terms of Value (USD).

Between ************* and ************, office and residential real estate transactions accounted for more than half of the total real estate transaction volume on the investment market in Germany. The value of office transactions reached **** billion euros in that period. Prime yields for commercial real estate in Germany saw the average highest return in the shopping center and retail warehouse parks, with **** and *** percent in the second quarter of 2020.

The Mexico Commercial Real Estate Market is Segmented by Property Type (Office, Retail, Logistics, and More), by Business Model (Sales and Rental), by End User (Individuals / Households, Corporates and SMEs and More), and by States (Mexico City (CDMX), Nuevo León, Jalisco, Querétaro, México State (Edomex) and Rest of Mexico). The Market Sizes and Forecasts are Provided in Terms of Value (USD).

The real estate sales and brokerage industry is navigating a complex landscape with high mortgage rates and dropping home sales. The Federal Reserve's decision to raise the benchmark interest rate 11 times across 2022 and 2023 to combat inflation led to a significant climb in mortgage rates, dampening buyer demand and affordability. This gain has deterred homeowners from selling, leading to low housing inventory. Despite the rate cuts that came in 2024, mortgage rates remain high, with the typical 30-year fixed mortgage staying above 6.5%. Existing home sales also hit a near 30-year low in 2024, mainly because of high home prices and tight supply. Amid these challenges, the real estate market has seen a surge in home values, propelling industry growth. This growth greatly benefits real estate agents and brokerages, who often base their commissions on the house's selling price. Despite the high vacancy rates, the office market also shows signs of picking up, primarily because of demand for high-quality assets such as Class A office spaces and modern buildings. Increased competitive pressure necessitates more aggressive marketing tactics to secure listings and attract sellers. Nonetheless, because of the industry's robust performance from 2020 to 2021, revenue has climbed at a CAGR of 0.8% over the past five years, reaching $241.3 billion in 2025. 2025 revenue will climb an estimated 1.0% as home price appreciation and a rebound in commercial sales volume will fuel tepid growth. The higher-for-longer interest rate environment is expected to slow the industry's growth. The high mortgage rates and escalating home prices will likely price out many potential home buyers from the market, forcing customers to rent or live in multifamily complexes. The limited new office construction will stimulate office building sales and intensify brokerage activity. The housing stock situation is expected to remain tight, with homeowners staying in their homes for longer and contributing to home price appreciation. Amid these conditions, a likely shift toward new construction and build-to-rent properties for agents and brokers is anticipated. Increased competition in the form of market saturation and disruption from online platforms will inhibit profit growth. Overall, industry revenue will gain at a CAGR of 2.3% to reach $270.8 billion in 2030.

The real estate agency service market, valued at $1,414.35 million in 2025, is projected to experience robust growth, exhibiting a compound annual growth rate (CAGR) of 8.3% from 2025 to 2033. This expansion is fueled by several key factors. Increasing urbanization and population growth globally are driving higher demand for residential and commercial properties, creating a significant need for professional real estate agency services. Technological advancements, such as online property portals and sophisticated data analytics, are streamlining the buying and selling process, attracting more clients and enhancing efficiency for agencies. Furthermore, a growing preference for personalized service and expert guidance in navigating complex real estate transactions contributes to the market's growth. The rise of boutique agencies specializing in niche markets (luxury properties, commercial real estate, etc.) also adds to the market's dynamism. However, the market is not without its challenges. Economic fluctuations and interest rate hikes can impact buyer affordability and consequently, transaction volumes. Increased competition from online platforms and independent agents necessitates agencies to constantly innovate and adapt their business models to retain market share. Regulatory changes and compliance requirements also present hurdles for agencies to navigate. Despite these challenges, the long-term outlook for the real estate agency service market remains positive, driven by fundamental demographic trends and the ongoing need for expert real estate brokerage services. The prominent players, including Colliers, CBRE, Okay, Radian, The Agency, The Balance, Vingt Paris, Neho, and Midland Realty, are strategically positioning themselves to capitalize on these growth opportunities. Their success will likely depend on their ability to leverage technology, provide superior client service, and adapt to changing market conditions.