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.

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.

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.

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.

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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

Controlled Atmosphere Packaging (CAP) System Market Outlook

The global Controlled Atmosphere Packaging (CAP) System market size was valued at approximately USD 18 billion in 2023, and it is projected to reach USD 32 billion by 2032, growing at a compound annual growth rate (CAGR) of 6.5% during the forecast period. The growth of this market is primarily driven by the increasing demand for longer shelf life of perishable goods, which CAP systems efficiently provide by altering the atmospheric composition around the packaged product. Additionally, the rising consumer inclination towards packaged and ready-to-eat food products, owing to changing lifestyle patterns and increasing disposable incomes, further propels the market in a positive direction.

The escalating demand for CAP systems is significantly driven by the growing food and beverage industry, which seeks advanced packaging solutions to combat food wastage and maintain product freshness for extended periods. As the world population continues to expand, the need for efficient food preservation techniques has become more crucial, and CAP systems are proving to be a vital solution. These systems help in reducing oxygen levels and maintaining an optimal mixture of gases, which slows down the metabolic processes of perishable goods, ultimately extending their shelf life. The emphasis on food safety standards and the growing trend of eco-friendly packaging solutions also play a vital role in this market's expansion.

Moreover, technological advancements in CAP systems are enhancing the efficiency and applicability of these solutions in various sectors. The development of smart packaging technologies, which integrate CAP with sensors and indicators, ensures that the products remain in optimal condition until consumption. These innovations cater to the evolving demands of both producers and consumers, who seek packaging solutions that offer transparency and guarantee product quality. Furthermore, governments across different regions are actively promoting CAP systems as a means to reduce food spoilage and waste, which further bolsters market growth. The advent of automation in CAP systems is also making them more accessible and cost-effective, thus inviting more participation from small and medium enterprises.

The regional outlook for the CAP system market indicates promising opportunities, with Asia Pacific leading the charge due to its large population base and burgeoning food processing industry. North America follows closely, driven by high consumer awareness and stringent regulations regarding food safety. Europe is also expected to exhibit considerable growth, primarily due to the increasing demand for sustainable packaging solutions. Latin America and the Middle East & Africa regions, though smaller in market share, are gradually adopting CAP systems due to rising urbanization and improvements in the retail infrastructure. These regions are anticipated to show moderate growth, supported by government initiatives aimed at enhancing food security.

Product Type Analysis

The CAP system market is segmented into several product types, including Pallet Covers, Bags, Films, and Others. Among these, films have emerged as a dominant segment due to their versatility and adaptability across various packaging needs. Films offer enhanced barrier properties, flexibility, and ease of customization, making them ideal for preserving different types of perishable products. The demand for films is particularly strong in the food and beverage sector, where preserving the freshness and extending the shelf life of products is of utmost importance. With advancements in material sciences, films are now being equipped with features such as UV resistance and anti-fog properties, further increasing their value proposition.

Pallet covers, on the other hand, are gaining traction in scenarios where bulk transportation and storage are involved. They provide an added layer of protection against environmental factors such as moisture, dust, and physical damage. The use of pallet covers is more prevalent in large-scale operations such as warehousing and logistics, where the focus is on maintaining the integrity of the packed goods during transit. These covers are often used for seasonal fruits and vegetables, where large quantities need to be moved efficiently without compromising quality.

Bags, as a product type, offer significant benefits in terms of ease of use and cost-effectiveness. They are particularly popular in the retail segment, where end consumers demand convenient packaging options that are easy to handle. The development

The FTSE Nareit All Equity REITs index is a free-float adjusted, market capitalization-weighted index of equity real estate investment trusts (REITs) in the United States. As of December 2024, the market cap of the index was *** trillion U.S. dollars, up from *** trillion U.S. dollars in December 2021. To be included in the index, the 140 constituents have to have more than ** percent of total assets in qualifying real estate assets other than mortgages secured by real property. Infrastructure, residential, and retail real estate are the largest REIT segments: Retail real estate REITs had a market cap of *** billion U.S. dollars as of December 2024, while industrial had a market cap of almost ***** billion U.S. dollars. The number of REITs has remained fairly constant in recent years, but the market cap has increased notably.