| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 1.70 Trillion |
| Market Size (2030) | USD 1.94 Trillion |
| CAGR (2025 - 2030) | 2.61% |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US Commercial Real Estate Market Analysis
The United States Commercial Real Estate Market size in terms of transaction value is expected to grow from USD 1.70 trillion in 2025 to USD 1.94 trillion by 2030, at a CAGR of 2.61% during the forecast period (2025-2030).
While the COVID-19 pandemic continued to impact the US real estate market, specific sectors began to show signs of moderate recovery throughout 2021. With the deployment and increasing availability of COVID-19 vaccines during Q1 and Q2 2021, many US states completed phased "re-openings" of their economies, ending stay-at-home and lockdown orders and eliminating real estate capacity restrictions. These measures drove up the consumer demand for goods and services, which was subdued throughout the lockdown. This demand resulted in a modest increase in performance among previously-depressed markets, particularly hospitality, through mid-2021.
Driven by a marked increase in leisure travel, the monthly hotel occupancy rate in the country returned to near pre-pandemic levels during the summer of 2021, with a 69.6% monthly occupancy rate by the end of July, the highest since August 2019.
Retail vacancy levels decreased slightly through mid-2021, continuing a slightly encouraging downward trend that began in Q4 2020. Similarly, a push toward the end of remote work in many industries resulted in a significant quarterly decrease in the rate of new vacancies in Q2 2021.
Despite these positive developments, the overall vacancy levels for the hotel and office sectors remain above pre-pandemic levels, due in part to continued remote work and the lack of a rebound in business travel due to the pandemic. For example, the total US hotel occupancy rate by the end of Q2 2021 was down by 17% compared to Q2 2019. Similarly, the overall national office vacancy level increased by 50 basis points in Q2 2021 to 16.5%. This is just below the peak vacancy level of 16.8%, which was recorded following the global financial crisis of 2008. Based on the current speeds of increase in occupancy levels, a full recovery in either sector is not expected until late 2022.
In the retail sector, despite the decreases evidenced in Q1 and Q2 2021, vacancy levels remain at historic highs due to the continued shift in consumer sentiment towards online shopping and rising inflation resulting in part from the pandemic.
US Commercial Real Estate Market Trends
Industrial Sector Expected to Record High Demand
The US commercial real estate market ended 2021 with unprecedented demand, exceptionally low vacancy rates, and record-setting rental growth. Though the supply chain crisis added pressure to many economic factors, the industrial sector benefited from supply chain reconfigurations. While industry demand shifted away from e-commerce in 2021, the existing online shopping practices drove up the demand for 3PL and logistics and distribution.
Since the onset of the pandemic, industrial leasing has increased by more than 24%. The scarce availability of properties in the market continued to push vacancy down in 2021. For the first time in history, vacancy dropped below the 4% threshold, with a vacancy rate of 3.8% reported in 2021. With the strong leasing from prior quarters and tenants shifting properties throughout 2021, the net absorption increased by more than 81% year-over-year. The net absorption significantly exceeded expectations that year, recording over 496.3 million sq. ft. Rents also continued to trend upward as the market grew even more competitive, with the average asking rate at USD 7.11 per sq. ft. Also, the year-over-year rent was up by 11.3%.
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Chicago's Office Sector Closed 2021 on a High
After much turbulence, the Chicago suburban office market closed 2021 on a high after realizing year-over-year growth in new lease transactions and improved levels of capital market activity. Overall, leasing realized a slight uptick quarter-over-quarter, but the total activity realized throughout the year grew 14% compared to 2020. The average term increased consecutively over the last three quarters, as tenants became more comfortable signing longer-term deals in the second half of the year. The current average is 66 months, which remains 13% below pre-pandemic standards. While new leasing grew over the course of the year, tenants are disproportionately favoring Class A offices, which accounted for nearly 70% of the new leases executed in 2021.
The overall absorption levels began to plateau as Q4 realized -50,807 sq. ft of absorption. The largest move-outs came from AT&T at 903 National Pkwy and Lake Forest Graduate School at 1300 E Woodfield for 106,380 sq.ft and 56,000 sq.ft, respectively. Much the like the rest of the nation, the Class B office inventory continued to underperform. This was due to large tenant downsizes and a shift in preference to high-quality Class A buildings in order to motivate employees to return to physical workplaces.
Property sales grew substantially in the second half of the year after nine buildings traded hands from Q3 to Q4. A total of 14 buildings were sold in 2021 for just over USD 0.5 billion in transactional volume, which is slightly lower than the usual levels. The largest transaction closed in Deerfield after the four-building 700,000 sq. ft campus, Corporate 500, closed for USD 178 million or USD 256 per square feet. The transaction marked the highest sale price recorded over the last three years.
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US Commercial Real Estate Industry Overview
Commercial real estate in the United States has a low level of market share concentration. The industry is extremely diverse and covers a large sector of the economy. Commercial real estate activity has a medium level of capital intensity. The competition among providers may continue to drive market pricing and contractual terms, creating aggressive leasing scenarios. The key players in the market are Simon Property Group, Franklin Street, Shannon-Waltchack, and Progressive Real Estate Partners.
US Commercial Real Estate Market Leaders
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Simon Property Group
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Shannon-Waltchack
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Progressive Real Estate Partners
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John Propp Commercial Group
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Mohr Partners
- *Disclaimer: Major Players sorted in no particular order
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US Commercial Real Estate Market News
In March 2022, Progressive Real Estate Partners, the leading retail real estate brokerage firm in the Inland Empire, announced the USD 8 million-worth sale of The Grove. This property is a Circle K anchored neighborhood center located in Orange St. in Redlands, CA. The 39,339-square-foot property is situated at the signalized intersection of Orange Street and San Bernardino Avenue, just minutes from the I-10 and I-210 freeways and the University of Redlands.
In February 2022, Shannon Waltchack (SW) acquired a 23,150 sq. ft shopping center Gateway Plaza in Bloomingdale, IL - the sixth acquisition in SW's latest fund. The center is 100% occupied by a mix of medical, service, and food tenants, including Aspen Dental, LensCrafters, and McAlister's Deli.
US Commercial Real Estate Industry Segmentation
Commercial property refers to real estate used for commercial activities, like offices and large rental residential properties. The owners of these buildings or lands need to pay additional taxes in compliance with the government's policies and laws. These buildings are rented out to generate a profit, either from capital gains or rental income.
The report provides key insights into the US Commercial Real Estate market. It includes the technological developments, the trends, and the initiatives taken by the government in this sector. The report sheds light on the factors driving the market, restraints to the market growth, and opportunities. Additionally, the competitive landscape of the commercial real estate market is depicted through the profiles of key players.
The market is segmented by type (office, retail, industrial, logistics, hospitality, and multi-family) and key city (New York, Chicago, Los Angeles, San Francisco, Boston, Denver, Houston, Phoenix, Atlanta, and Salt Lake City). The report offers the market size and forecasts in terms of value (USD billion) for all the above segments.
| By Type | Offices |
| Retail | |
| Industrial | |
| Logistics | |
| Multi-family | |
| Hospitality | |
| By Key City | New York |
| Chicago | |
| Los Angeles | |
| San Francisco | |
| Boston | |
| Denver | |
| Houston | |
| Phoenix | |
| Atlanta | |
| Salt Lake City |
By Type
| Offices |
| Retail |
| Industrial |
| Logistics |
| Multi-family |
| Hospitality |
By Key City
| New York |
| Chicago |
| Los Angeles |
| San Francisco |
| Boston |
| Denver |
| Houston |
| Phoenix |
| Atlanta |
| Salt Lake City |
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US Commercial Real Estate Market Research FAQs
How big is the United States Commercial Real Estate Market?
The United States Commercial Real Estate Market size is expected to reach USD 1.70 trillion in 2025 and grow at a CAGR of 2.61% to reach USD 1.94 trillion by 2030.
What is the current United States Commercial Real Estate Market size?
In 2025, the United States Commercial Real Estate Market size is expected to reach USD 1.70 trillion.
Who are the key players in United States Commercial Real Estate Market?
Simon Property Group, Shannon-Waltchack, Progressive Real Estate Partners, John Propp Commercial Group and Mohr Partners are the major companies operating in the United States Commercial Real Estate Market.
What years does this United States Commercial Real Estate Market cover, and what was the market size in 2024?
In 2024, the United States Commercial Real Estate Market size was estimated at USD 1.66 trillion. The report covers the United States Commercial Real Estate Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the United States Commercial Real Estate Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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US Commercial Real Estate Industry Report
The United States commercial real estate market is experiencing robust growth and transformation, driven by diverse market segments and evolving business needs. This sector, a critical component of the national economy, includes a variety of property types such as offices, retail spaces, industrial facilities, logistics centers, multi-family units, and hospitality venues. These properties play a vital role in supporting business operations and economic activities across top commercial real estate companies in the United States.
Key trends shaping the market include a growing demand for flexible office spaces and co-working environments, influenced by the shift towards remote work and the need for adaptable workspaces. Additionally, there is an increasing preference for mixed-use developments that integrate residential, commercial, and retail spaces, fostering vibrant communities. The market is also influenced by macroeconomic factors like low interest rates and demographic shifts towards urban centers, boosting demand across regions including the Northeast, Midwest, South, and West.
Industry outlook suggests a positive trajectory for the market, supported by comprehensive industry statistics and market data. Market analysis reveals significant growth potential, with market size expanding across various segments. Industry research highlights the importance of market segmentation and the role of market leaders in driving industry trends. The market forecast indicates continued market growth, with market predictions emphasizing the value of market overview and market review in understanding future developments.
Detailed industry analysis and industry information provide insights into market value and market outlook, essential for stakeholders. Industry reports and industry research offer critical data for market leaders and research companies. The market outlook and market overview underscore the significance of industry size and industry sales in shaping the market landscape. Report examples and report pdfs serve as valuable resources for understanding market trends and growth rate.
Overall, the market segmentation and market value are crucial for comprehending the market dynamics. The comprehensive market forecast and market review ensure stakeholders are well-informed about market predictions and industry trends, facilitating strategic decision-making.
