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.

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.

Graph and download economic data for Commercial Real Estate Prices for United States (COMREPUSQ159N) from Q1 2005 to Q1 2025 about real estate, commercial, rate, and USA.

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 **** percent, while for class AA downtown offices, the cap rate was **** 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.

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.

In 2023, the return of the national NCREIF Property Index in the United States declined for the first time since 2009. The annualized total return of the index plummeted in 2023, followed by a slight increase in 2024. Just three years ago, in 2021, the rate of return of the index hit **** percent. The NCREIF Property Index reflects the change in prices of commercial real estate for investment purposes in the United States. Property types with the highest cap rates Cap rates, which measure the expected return rate of a real estate asset, were the highest for retail properties in 2023. While a higher cap rate indicates a higher rate of return, it is also associated with higher risk: The multifamily sector, which has enjoyed steady and robust growth in recent years, had the lowest cap rate of all commercial property types. Commercial property area with the best development prospects In 2025, the real estate development opportunities for single-family housing were deemed to be the best when compared with other types of commercial property. Industrial real estate includes warehouses, factories, and big box distribution centers.

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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 financing from banks and i

In the first quarter of 2022, retail centers in the United States had a higher capitalization rate than shops. Capitalization rate, also referred to as cap rate, shows the ratio of the net operating income towards the property asset value. In the first quarter of 2022, the average cap rate of retail real estate in the U.S. was **** percent.

Unlock the full potential of the short-term rental market with our comprehensive Airbnb Listing Data. This dataset provides a granular, 360-degree view of listing performance, property characteristics, and market dynamics across key global geographies. Designed for Real Estate Investors, Property Managers, Hedge Funds, and Travel Analysts, our data serves as the backbone for data-driven decision-making in the hospitality sector.

Whether you are looking to optimize pricing strategies, identify high-yield investment neighborhoods, or analyze amenity trends, this dataset delivers the raw intelligence required to stay ahead of the competition. We capture high-fidelity signals on listings, availability, pricing, and reviews, allowing you to model supply and demand with precision.

Key Questions This Data Answers Our data is structured to answer the most pressing commercial questions in the short-term rental industry. By leveraging our granular fields, analysts can immediately address:

Market Composition: What is the exact distribution of property types (Entire Home vs. Private Room vs. Shared) in a specific market? Understand supply saturation instantly.

Amenity ROI: Which amenities are most common in top-performing listings? Correlate features (e.g., Pools, Hot Tubs, Wi-Fi speeds) with Occupancy Rates and ADR (Average Daily Rate) to determine the ROI of renovations.

Pricing Intelligence: How does nightly price vary by neighborhood, seasonality, and property type? Visualize price elasticity and identify arbitrage opportunities between sub-markets.

Geospatial Density: What is the density of listings in different geographical areas? Pinpoint "hot zones" for tourism and identify underserved areas ripe for new inventory.

Performance Benchmarking: How do my listings compare to the top 10% of competitors in the same zip code?

Comprehensive Use Cases 1. Market Analysis & Competitive Positioning Gain a competitive edge by understanding the landscape of any target city.

Competitor Mapping: Track the growth of listing supply in real-time. Identify which property managers control the market share.

Saturation Analysis: Avoid over-supplied markets. Use density metrics to find neighborhoods with high demand but low inventory.

Trend Forecasting: Analyze historical data to predict future supply shifts and market saturation points before they occur.

1. Pricing Strategy & Revenue Management Move beyond static pricing. Our data enables dynamic pricing models based on real-world market conditions.

Attribute-Based Pricing: Quantify exactly how much a "Sea View" or "King Bed" adds to the nightly rate.

Seasonality Adjustments: Optimize calendars by analyzing historical price surges during holidays, events, and peak seasons.

RevPAR Optimization: Balance Occupancy and ADR to maximize Revenue Per Available Room (RevPAR).

1. Real Estate Investment & Valuation For investors and funds, this data acts as a fundamental layer for asset valuation.

Cap Rate Calculation: Combine our revenue data with property values to estimate potential yields and Cap Rates for prospective acquisitions.

Investment Scouting: Filter entire regions by "High Occupancy / Low Price" to find undervalued assets.

Due Diligence: Validate seller claims regarding income potential with independent, third-party data history.

1. Property Type & Amenity Distribution Analysis Understand what guests actually want.

Amenity Gap Analysis: Identify amenities that are in high demand (high search volume) but low supply in specific neighborhoods.

Renovation Planning: Data-driven insights on whether installing A/C or allowing pets will significantly increase booking conversion.

Data Dictionary & Key Attributes Our schema is designed for financial modeling and granular analysis. We provide over 50 distinct fields per listing, including calculated financial metrics for Trailing Twelve Months (TTM) and Last 90 Days (L90D).

Listing Identity & Characteristics:

listing_id: Unique identifier for the listing

listing_name & cover_photo_url: Title and main visual

listing_type & room_type: Property classification (e.g., villa, entire home)

amenities: Comprehensive list of offered features

min_nights & cancellation_policy: Booking rules and restrictions

instant_book & professional_management: Operational indicators

Property Specs & Capacity:

guests, bedrooms, beds, baths: Full capacity details

latitude, longitude, city, state, country: Precise geospatial coordinates

photos_count: Quantity of listing images

Host Intelligence:

host_id & host_name: Primary operator details

cohost_ids & cohost_names: Extended management team details

superhost: Quality badge status

Financial Performance (TTM - Trailing 12 Months):

ttm_revenue & ttm_revenue_native: Total gross revenue generated

ttm_avg_rate (ADR): Average Daily Rate achieved

ttm_occupancy & ttm_adjusted_occupancy: Raw vs. Adjusted (excluding owner blocks) occupancy

ttm_revpar & ttm_adjusted_revpar: Revenue Per ...

The India Real Estate Market Report is Segmented by Business Model (Sales and Rental), by Property Type (Residential and Commercial), by End-User (Individuals/Households, Corporates & SMEs and Others), and by City (Mumbai Metropolitan Region, Delhi NCR, Pune, Bengaluru, Hyderabad, Chennai, Kolkata, Ahmedabad, and the Rest of India). The Market Forecasts are Provided in Terms of Value (USD).

In December 2024, the monthly capitalization rate of logistics facilities in Tokyo's 23 wards owned by real estate investment trusts (REITs) in Japan stood at **** percent. The monthly capitalization rate in Osaka was **** percent.

A mill is equal to $1.00 of tax for each $1,000 of assessment. To calculate the property tax, multiply the assessment of the property by the mill rate and divide by 1,000. For example, a property with an assessed value of $50,000 located in a municipality with a mill rate of 20 mills would have a property tax bill of $1,000 per year.

The rates for each year are based on the grand list from two years prior. For example, the mill rates for the 2021 fiscal year are based off the 2019 grand list.

Starting in FY 2017, legislation allows municipalities and special taxing districts to tax motor vehicles at a different rate than other taxable property, but it imposes a cap on the mill rate for motor vehicles. No district or borough may set a motor vehicle mill rate that if combined with the motor vehicle mill rate of the town, city, consolidated town and city or consolidated town and borough in which such district or borough is located would result in a combined motor vehicle mill rate above the cap.

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 **** percent, up from *** percent in April 2022.

The capitalization rate of self-storage investment properties in the United States generally decreased between the second quarter of 2010 to the fourth quarter of 2021. As of the fourth quarter of 2021, the average cap rate of self-storage properties was *** percent.

The prime yields in the UK expanded across most property types between 2022 and 2025. In April 2025, yields were the lowest in the London West End offices market at *****percent. In contrast, shopping center yields stood at ****percent. Yield is an indicator for the expected return of a property investment and is calculated as the ratio of rental income and the property value. Several factors can drive yields - increased demand could raise property values, causing lower yields, while a fall in demand could create the opposite effect. Which is the largest commercial real estate sector in the UK? Office real estate has traditionally accounted for the lion’s share of the commercial property investment market, but since the start of the COVID-19 pandemic, investors’ interest has shifted towards industrial real estate. With the e-commerce sector growing and supply chain management becoming more important than ever, so has the industrial and logistic sector. This increase in importance is also reflected in the occupiers market, with the annual take-up exceeding the ten-year average for three years in a row. How is the commercial property market expected to develop in the coming years? The industrial and logistic property market is forecast to outperform retail and offices in terms of capital value growth in the period between 2025 and 2028. According to the same forecast, rental growth is expected to turn positive for all property types in 2025, except for shopping centers.