The real estate investment trusts (REITs) market in the United States grew slightly in 2023, after plummeting in 2022. In 2023, the market cap of all REITs, including equity, mortgage, and hybrid, reached 1.37 trillion U.S. dollars. This was a decrease from the 1.74 trillion U.S. dollars recorded in 2021 when the market peaked. REITs are companies which own and operate real estate to generate income. U.S. REIT sector The number of REITs operating in the U.S. has fluctuated over the past 45 years, and in 2023 measured 195 firms. The number in operation has slightly fallen from its record high of 233 companies in 2015. REITs often specialize in a specific property type, with industrial and retail being the most popular asset types. Global dominance of American REITs The largest ten REITs worldwide were based in the United States in 2024. Prologis, a company specializing in logistics real estate, was the largest REIT globally in terms of market capitalization in that year.

The infrastructure real estate investment trust (REIT) Prologis was the largest U.S. REIT as of November 2024, with a market cap of almost 105 billion U.S. dollars. In 2024, the price to funds from operation (P/FFO) ratio of Prologis was estimated at 20.77, with 2025 witnessing a slight decline to 19.24. The REITs sector has grown substantially, with the market cap reaching a record high in 2021. After a difficult year of negative returns in 2022, the year-to-date total returns for all property segments returned to positive grounds in 2023.

Graph and download economic data for Nonfinancial Corporate Business; Structures, Equipment, and Intellectual Property Products, Current Cost Basis (Includes Used Car Premium and REITs Residential Structures), Level (BOGZ1FL105015085A) from 1945 to 2024 about REIT, premium, used, cost, intellectual property, nonfinancial, buildings, vehicles, residential, equipment, business, production, and USA.

Graph and download economic data for Mortgage Real Estate Investment Trusts; Corporate Equities (Market Value for Project); Liability, Level (BOGZ1FL643164193Q) from Q4 1945 to Q4 2024 about REIT, market value, equity, projection, liabilities, and USA.

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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, particularly in response to the e-commerce sector's continued expansion. This trend is further accentuated by the emergence of self-storage as a service, providing investors with attractive returns and meeting the evolving needs of consumers. However, the market also faces challenges, including intense competition and the need for vertical integration to remain competitive. E-commerce giants are increasingly investing in their logistics capabilities, creating a more complex and dynamic market landscape. To capitalize on these opportunities, companies must stay agile and adapt to changing consumer preferences and market conditions. Strategic partnerships, innovation, and operational efficiency will be key differentiators for success in this competitive market.

What will be the Size of the REIT Market during the forecast period?

Request Free SampleThe Real Estate Investment Trust (REIT) market represents a significant segment of the investment landscape, offering income-producing opportunities through commercial real estate. REITs are publicly traded entities that enable investors to access the benefits of owning and operating income-generating commercial properties without the operational burdens. Both traded and non-traded REITs are available, each with unique features and eligibility criteria. The market is characterized by its sizeable presence, with numerous entities focusing on various commercial property sectors, including equity, mortgage, hybrid, and private REITs. These entities provide investors with dividend yields, capital appreciation potential, and diversification benefits. However, investing in REITs involves risks, including liquidity concerns, share value transparency, conflicts of interest, and potential fraud. Investors should carefully consider these factors, along with fees, taxes, and broker or financial adviser relationships, when constructing their investment portfolios. REITs offer investors regular income through rental yields and potential capital gains. Dividend income and equity appreciation make REITs an attractive option for those seeking income and growth. However, investors should be aware of taxation implications, including eligibility criteria and capital gains taxes. Investors should consult with their financial advisers to understand the risks and benefits of REITs and to determine whether they align with their investment objectives and risk tolerance. Ultimately, REITs provide a valuable opportunity for investors seeking income and growth in the commercial real estate sector.

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 AmericaUSCanadaAPACChinaIndiaJapanSingaporeEuropeFranceGermanyItalyUKSouth AmericaMiddle East and Africa

By Type Insights

The industrial segment is estimated to witness significant growth during the forecast period.The market experienced notable growth in the industrial sector in 2024, driven by the increasing demand for commercial real estate, particularly warehousing space. The COVID-19 pandemic accelerated this trend as online sales d, necessitating more warehouse space for inventory storage. Industrial companies have responded by leasing additional warehouses to meet occupancy and rental rate demands. Furthermore, e-commerce companies are establishing warehouses and fulfillment centers near metropolitan areas to cater to growing online consumer bases. These factors create significant expansion opportunities for industrial REITs, including Equity, Mortgage, and Hybrid types, thereby fueling market growth. Publicly traded and non-traded REITs offer investors diverse investment portfolio options, providing both dividend income and capital appreciation potential. Transparent share value and dividend yields, professional management, and regular income make REITs an attractive asset allocation choice for investors seeking diversification and emergency liquidity.

Get a glance at the market report of share of various segments Request Free Sample

The Industrial segment was valued at USD 1525.50 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 63% to the growth of the global market during t

The shopping center REIT SITE Centers is estimated to reach the highest price to funds from operation (P/FFO) in the United States in 2025. According to the March 2024 estimate, the P/FFO value of SITE Centers, one of the REITs with the largest caps in the country, will reach 13.9 percent in 2024 and 15.2 percent in 2025. P/FFO measures the ratio of the share price to the mean cash flow from operations. A high ratio suggests that the stock is priced higher compared to the company's cash flow - a sign of high investor confidence. Nevertheless, a high ratio also suggests that a stock may be overpriced.

Graph and download economic data for Real Estate Investment Trusts; Consumption of Fixed Capital, Nonresidential Structures, Current Cost Basis, Transactions (BOGZ1FU646330063Q) from Q4 1946 to Q4 2024 about REIT, cost, nonresidential, transactions, fixed, capital, buildings, consumption, and USA.

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 2023, the market cap of the index was 1.3 trillion U.S. dollars, up from 1.2 trillion U.S. dollars in December 2021. To be included in the index, the 140 constituents have to have more than 50 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: Industrial real estate REITs had a market cap of 178 billion U.S. dollars as of December 2023, while retail had a market cap of almost 190 billion U.S. dollars. The number of REITs has remained fairly constant in recent years, but the market cap has increased notably.

The infrastructure real estate investment trust (REIT) Prologis was the largest U.S. REIT as of October 31, 2024, with a market cap of almost 105 billion U.S. dollars. During this period, the debt to ratio of Prologis was 23.6 percent. The debt ratio measures the financial leverage of a company and is calculated as the total debt divided by the sum of implied market capitalization and total debt.

The price to earning (PE) ratios of REITs worldwide as of March 2023 varied between six and 26 percent, depending on the market. The PE ratio is a valuation metric and is calculated as the ratio of the total market cap to the total earnings. A higher PE ratio means that the market cap has grown higher than the earnings - a sign of high investor confidence but also that the market may be overpriced. Though the U.S. REITs market had the highest PE ratio as of March 2023 (26), it was also a decrease from the same period in 2022. REITs are companies that own or finance rental real estate. One of their major benefit is liquidity: Though not all REITs are publicly traded, many of the major ones are, which allows investors to easily buy and sell shares. Because REITs pay out most of their taxable income to shareholders as dividends, they typically do not pay any corporate income tax.

Prologis, American Tower, and Welltower were the real estate investment trusts (REITs) worldwide with the largest market caps as of April 11, 2024. All three REITs were headquartered in the United States. If fact, out of the 40 largest REITs, only seven were headquartered outside the United States. Among them were Goodman Group (Australia), Link Real Estate Investment Trust (Hong Kong), Segro Plc (the UK).

Graph and download economic data for 13) To the Extent That the Price or Nonprice Terms Applied to Trading Reits Have Tightened or Eased over the Past Three Months (as Reflected in Your Responses to Questions 11 and 12), What Are the Most Important Reasons for the Change?| A. Possible Reasons for Tightening | 6. Worsening in General Market Liquidity and Functioning. | Answer Type: 2nd Most Important (ALLQ13A62MINR) from Q1 2012 to Q4 2024 about ease, REIT, marketable, general, change, liquidity, 3-month, trade, price, and USA.

Graph and download economic data for Real Estate Investment Trusts; Fixed Assets, Book Value, Transactions (BOGZ1FA645013103A) from 1946 to 2023 about book, REIT, transactions, fixed, assets, and USA.

Prologis was the real estate investment trust (REIT) with the largest market cap in the United States as of March 2023. The market cap, or the aggregate value of the total outstanding shares of the company was over 115 billion U.S. dollars during that period. Nevertheless, American Tower Corp had the highest revenue, at 10.7 billion U.S. dollars and the second-highest EBITDA margin. American Tower Corp's earnings before interest, taxes, depreciation, and amortization amounted to 89.9 percent of the company's revenue. In terms of dividends, Simon Property Group Inc ranked first, whereas Public Storage had the highest five-year return on investment (ROI) - 17.25 percent.

The market cap of real estate investment trusts (REITs) in France declined in the fourth quarter of 2024. As of December 2024, the aggregate market capitalization, or the market value of the outstanding shares of stocks of all REITs, amounted to 37.94 billion U.S. dollars. REITs are companies that own or finance rental real estate. One of their major benefits is liquidity: Though not all REITs are publicly traded, many of the major ones are, which allows investors to easily buy and sell shares. Because REITs pay out most of their taxable income to shareholders as dividends, they typically do not pay any corporate income tax.

The Europe REITs Market Report is Segmented by Sector of Exposure (Retail, Industrial, Office, Residential, Diversified, and Other Sectors of Exposure) and Country (United Kingdom, France, Belgium, Netherlands, Spain, and Rest of Europe). The Report Offers Market Sizes and Forecasts in Terms of Value (USD) for all the Above Segments.

As of February 2024, many different types of REITs in the United States traded with a discount to the NAV. On average, U.S. REITs traded with median discounts of 15 percent. Diversified REITs saw the heaviest median discount, this being 27.1 percent. Datacenters were the only property type which traded with a median premium to the NAV (15.2 percent). The net asset value (NAV) is the price at which shares or units of a REIT are traded.

Graph and download economic data for Real Estate Investment Trusts; Debt Securities; Asset, Market Value Levels (BOGZ1LM644022005A) from 1945 to 2022 about REIT, market value, debt, securities, assets, and USA.

The market cap of real estate investment trusts (REITs) in Canada has decreased dramatically since 2021. As of December 2024, the aggregate market capitalization, or the market value of the outstanding shares of stocks of all REITs, amounted to 32.84 billion U.S. dollars, down from 58.9 billion U.S. dollars in December 2021. REITs are companies that own or finance rental real estate. One of their major benefits is liquidity: Though not all REITs are publicly traded, many of the major ones are, which allows investors to easily buy and sell shares. Because REITs pay out most of their taxable income to shareholders as dividends, they typically do not pay any corporate income tax.

Green bonds' popularity has been increasing in recent years. Real Estate Investment Trusts (REITs) were not immune to green bonds' appeal. In 2021, REITs in the United States issued green bonds worth nearly 12 billion U.S. dollars. In 2023, however, green bonds issuance by REITs in the U.S. decreased to 1.6 billion U.S. dollars.