The coronavirus (COVID-19) pandemic has led to major cyclical and structural changes in the office real estate sector. As a result of the economic downturn and rising unemployment, along with an increasing share of businesses that introduce the option to work from home, office real estate demand in certain regions worldwide is forecast see a short term decline. In 2022, office real estate vacancy rates are forecast to peak at **** percent in the United States, **** percent in Europe, and **** percent in Greater China. In the Asia Pacific region and in Canada, vacancies are expected to reach their highest point in 2022.

Medellín experienced the lowest vacancy rate for retail real estate among the major cities of Colombia in 2024. The vacancy rate for retail facilities in Medellín was *** percent in the second quarter of the year, down from *** percent in the same period in 2022. At the other end of the spectrum was Cali, where the vacancy rate was *** percent.

In 2023, the average vacancy rate for industrial and logistics real estate in the United States started to rise, marking the first increase since early 2020. As of the first quarter of 2025, approximately *** percent of industrial and logistics real estate was vacant - an increase of **** percentage points since the fourth quarter of 2022. Despite vacancies rising, in many of the major industrial markets, the vacancy rate stood below five percent. Why has the vacancy rate increased? High-quality warehousing and fulfillment centers are crucial to the e-commerce sector because they allow retailers to establish efficient processes, reduce costs, and meet consumer expectations. During the COVID-19 pandemic, e-commerce sales grew rapidly, driving demand for industrial and logistics real estate. Rising leasing activity led to the share of available space dropping notably. As development increased to meet this demand, 2023 experienced the highest amount of new completions and vacancies rising. Which are the largest U.S. industrial and logistics markets? Home to the largest port complex in North America and a gateway for the trade between Asia and North America, Greater Los Angeles is the market with the most industrial and logistics real estate stock. Nevertheless, when considering demand, Phoenix and Houston topped the ranking with the most industrial and logistics real estate absorbed in 2024. Both markets possess a strategic location, proximity to the Gulf of Mexico, and a convenient connection to major East and West Coast markets.

Netherlands - Job vacancy rate: Real estate activities was 3.30% in March of 2025, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Netherlands - Job vacancy rate: Real estate activities - last updated from the EUROSTAT on July of 2025. Historically, Netherlands - Job vacancy rate: Real estate activities reached a record high of 5.50% in June of 2022 and a record low of 2.00% in September of 2020.

Netherlands NL: Job Vacancy Rate: Real Estate Activities data was reported at 4.000 % in Dec 2024. This records an increase from the previous number of 3.900 % for Sep 2024. Netherlands NL: Job Vacancy Rate: Real Estate Activities data is updated quarterly, averaging 2.400 % from Mar 2001 (Median) to Dec 2024, with 96 observations. The data reached an all-time high of 5.500 % in Jun 2022 and a record low of 0.600 % in Jun 2013. Netherlands NL: Job Vacancy Rate: Real Estate Activities data remains active status in CEIC and is reported by Eurostat. The data is categorized under Global Database’s Netherlands – Table NL.Eurostat: Job Vacancy Rate.

Slovakia - Job vacancy rate: Real estate activities was 0.40% in March of 2025, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Slovakia - Job vacancy rate: Real estate activities - last updated from the EUROSTAT on August of 2025. Historically, Slovakia - Job vacancy rate: Real estate activities reached a record high of 0.90% in March of 2022 and a record low of 0.00% in December of 2021.

Vacancy rates across the office real estate sector in the U.S. increased in the second quarter of 2025. This was in line with a general trend of rising vacancies that started in 2020 during the COVID-19 pandemic. In the second quarter of 2025, about **** percent of office space across the country was vacant. In some major U.S. markets, vacancies exceeded ***percent. With a considerable part of the workforce working from home or following a hybrid working model, businesses are cautious when it comes to upscaling or renewing leases. Workplaces may never be the same again The COVID-19 pandemic has changed the way that companies operate, with working from home becoming the new normal for many U.S. employees. The function of the office has evolved from the primary workplace to a space where employees collaborate, exchange ideas, and socialize. That has shifted occupiers’ attention toward spaces with modern designs that can accommodate the office of the future. Many businesses used the pandemic time to revisit their office guidelines, remodel, or do a full or partial fit-out. With so much focus on quality, older buildings with poorer design or energy performance are likely to suffer lower demand, resulting in a two-speed market. What do higher vacancy rates mean for investors? Simply put, if landlords do not have tenants, their income stream is disrupted, and they cannot service their debts. April 2023 data shows that several U.S. metros had a significantly high share of distressed office real estate debt. In Charlotte-Gastonia-Concord, NC-SC, more than one-third of the commercial mortgage-backed securities for offices were delinquent, in special servicing, or a combination of both. As of March 2025, offices had the highest delinquency rate in the commercial property sector.

Germany - Job vacancy rate: Real estate activities was 1.20% in June of 2025, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Germany - Job vacancy rate: Real estate activities - last updated from the EUROSTAT on September of 2025. Historically, Germany - Job vacancy rate: Real estate activities reached a record high of 3.10% in June of 2022 and a record low of 1.20% in June of 2025.

Bulgaria - Job vacancy rate: Real estate activities was 0.40% in March of 2025, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Bulgaria - Job vacancy rate: Real estate activities - last updated from the EUROSTAT on August of 2025. Historically, Bulgaria - Job vacancy rate: Real estate activities reached a record high of 2.20% in June of 2022 and a record low of 0.20% in December of 2024.

Denmark DK: Job Vacancy Rate: Real Estate Activities data was reported at 2.100 % in Sep 2024. This stayed constant from the previous number of 2.100 % for Jun 2024. Denmark DK: Job Vacancy Rate: Real Estate Activities data is updated quarterly, averaging 1.200 % from Mar 2010 (Median) to Sep 2024, with 59 observations. The data reached an all-time high of 3.300 % in Jun 2022 and a record low of 0.400 % in Sep 2010. Denmark DK: Job Vacancy Rate: Real Estate Activities data remains active status in CEIC and is reported by Eurostat. The data is categorized under Global Database’s Denmark – Table DK.Eurostat: Job Vacancy Rate.

Norway Job Vacancy Rate sa: Prev Quarter Change: Real Estate Activities data was reported at 0.900 % Point in Dec 2024. This records an increase from the previous number of -0.300 % Point for Sep 2024. Norway Job Vacancy Rate sa: Prev Quarter Change: Real Estate Activities data is updated quarterly, averaging 0.050 % Point from Mar 2010 (Median) to Dec 2024, with 60 observations. The data reached an all-time high of 1.900 % Point in Dec 2022 and a record low of -2.200 % Point in Jun 2024. Norway Job Vacancy Rate sa: Prev Quarter Change: Real Estate Activities data remains active status in CEIC and is reported by Statistics Norway. The data is categorized under Global Database’s Norway – Table NO.G031: Job Vacancies: Statistics Norway.

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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.

Major Market Trends & Insights

APAC dominated the market and accounted for a 42% share in 2023. The market is expected to grow significantly in North America region as well over the forecast period. Based on the End-user, the offices segment led the market and was valued at USD 514.30 billion of the global revenue in 2023. Based on the Channel, the rental segment accounted for the largest market revenue share in 2023.

Market Size & Forecast

Market Opportunities: USD 1682.10 Billion Future Opportunities: USD 427.3 Billion CAGR (2024-2029): 4.6% APAC: Largest market in 2023

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.

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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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. The retail segment is the second largest segment of the end-user and was valued at USD 257.50 billion in 2023.

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.

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 pe

European Union Job Vacancy Rate: EU 27E: Real Estate Activities data was reported at 2.100 % in Dec 2024. This records a decrease from the previous number of 2.200 % for Sep 2024. European Union Job Vacancy Rate: EU 27E: Real Estate Activities data is updated quarterly, averaging 2.100 % from Jun 2012 (Median) to Dec 2024, with 50 observations. The data reached an all-time high of 2.900 % in Mar 2022 and a record low of 1.100 % in Dec 2013. European Union Job Vacancy Rate: EU 27E: Real Estate Activities data remains active status in CEIC and is reported by Eurostat. The data is categorized under Global Database’s European Union – Table EU.G016: Eurostat: Job Vacancy Rate.

Croatia - Job vacancy rate: Real estate activities was 1.50% in March of 2025, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Croatia - Job vacancy rate: Real estate activities - last updated from the EUROSTAT on September of 2025. Historically, Croatia - Job vacancy rate: Real estate activities reached a record high of 2.00% in March of 2022 and a record low of 0.40% in December of 2020.

Slovenia - Job vacancy rate: Real estate activities was 2.10% in June of 2025, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Slovenia - Job vacancy rate: Real estate activities - last updated from the EUROSTAT on September of 2025. Historically, Slovenia - Job vacancy rate: Real estate activities reached a record high of 3.40% in March of 2022 and a record low of 0.80% in June of 2020.

Denmark - Job vacancy rate: Real estate activities was 2.30% in March of 2025, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Denmark - Job vacancy rate: Real estate activities - last updated from the EUROSTAT on August of 2025. Historically, Denmark - Job vacancy rate: Real estate activities reached a record high of 3.30% in June of 2022 and a record low of 0.90% in September of 2020.

The vacancy rate of office real estate in the 11 Latin American markets ranked ranged between *** and **** percent in the second half of 2024. Rio de Janeiro had the highest vacancy rate, followed by Panama City and Mexico City. Conversely, Bogota had the lowest office vacancy rate.

Home Vacancy Rate for the United States was 1.00% in January of 2024, according to the United States Federal Reserve. Historically, Home Vacancy Rate for the United States reached a record high of 2.80 in January of 2008 and a record low of 0.80 in January of 2022. Trading Economics provides the current actual value, an historical data chart and related indicators for Home Vacancy Rate for the United States - last updated from the United States Federal Reserve on September of 2025.

Graph and download economic data for Rental Vacancy Rate for Texas (TXRVAC) from 1986 to 2024 about vacancy, rent, TX, rate, and USA.

European Union Job Vacancy Rate: ЕA 20: Real Estate Activities data was reported at 2.000 % in Dec 2024. This records a decrease from the previous number of 2.100 % for Sep 2024. European Union Job Vacancy Rate: ЕA 20: Real Estate Activities data is updated quarterly, averaging 1.900 % from Jun 2012 (Median) to Dec 2024, with 50 observations. The data reached an all-time high of 2.800 % in Jun 2022 and a record low of 1.200 % in Sep 2015. European Union Job Vacancy Rate: ЕA 20: Real Estate Activities data remains active status in CEIC and is reported by Eurostat. The data is categorized under Global Database’s European Union – Table EU.G016: Eurostat: Job Vacancy Rate.