Topic: Commercial real estate in the U.S. (2024)

Table of Contents
Why has the U.S. commercial property sector slowed? What are the drivers behind the recovery of the sector?  Key insights Editor’s Picks Current statistics on this topic Further recommended statistics Overview Overview Market segments Market segments Leading markets Leading markets Leading companies Leading companies Rent and vacancy rates Rent and vacancy rates FAQs References
  • Real Estate›
  • Commercial Real Estate

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The U.S. commercial real estate market is the arena of giants, where private equity, public companies, and institutional investors such as pension funds make multi-billion-dollar deals and define the landscape of cities. Commercial real estate is a profitable business. However, in 2023, investment properties saw the first year with negative returns since 2009. Investment activity has also plummeted, raising concerns about the health of the sector. 


Why has the U.S. commercial property sector slowed?

Cheap credit after the financial crisis brought rising rents and growing property values. Conversely, soaring interest rates and a sluggish economy after the COVID-19 pandemic made investors and occupiers more cautious. Uncertainty about the future of interest rates, economic growth, and demand also implies uncertainty in investment costs, anticipated rental growth, and price appreciation. The effects of this are visible in the development of cap rates – a measure of the expected return on investment showing the net operating income of a property as a ratio of the current asset value. The average cap rate for all property types has soared since 2021 - a consequence of the decline in property prices. The depreciation was most severe for offices, where asset values fell by more than 21 percent year-on-year as of the first quarter of 2024. 

What are the drivers behind the recovery of the sector? 

Properties need occupiers. Since 2021, vacancy rates have overall increased, showing signs of oversupply in the market. Offices have been most affected, as demand has decreased because of hybrid work and the flight to quality – occupiers’ growing preference for newly built, modern buildings. As business and consumer sentiment increase, transactions in the occupier market should recover, contributing to improving market fundamentals. Another challenge the sector must overcome is refinancing under a tighter lending environment. Commercial property is responsible for a growing volume of debt, with rising delinquency rates causing concerns. The much-anticipated decline in interest rates will help borrowers refinance and avoid widespread defaults. 

Despite an economic slowdown, the U.S. commercial property market continues to offer diverse investment opportunities. These opportunities will widely depend on the property type, location, quality, and naturally, the overall economic outlook and the development of interest rates.

This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.

Published by Statista Research Department, May 17, 2024

Key insights

Value of construction put in place
115bn USD

Topic: Commercial real estate in the U.S. (1)

Detailed statistics

Value of U.S. commercial construction from 2002 to 2022

Value of private warehouse construction
61.5bn USD

Topic: Commercial real estate in the U.S. (2)

Detailed statistics

U.S. value of new private sector commercial construction by subsector 2010-2022

Value of private office construction starts
26.66 bn USD

Topic: Commercial real estate in the U.S. (3)

Detailed statistics

Value of commercial and industrial construction starts in the U.S. 2023, by type

Get more insights

Editor’s Picks Current statistics on this topic

IndustrialAverage rent per square foot paid for industrial space U.S. 2017-2023, by type
OfficeOffice vacancy rates in the U.S. 2017-2023, per quarter
HotelsOccupancy rate of the U.S. hotel industry 2001-2022

Further recommended statistics

Overview

6
  • Premium Statistic Most attractive property sectors for investment in the Americas 2017-2023
  • Premium Statistic Index of commercial property prices in the U.S. 2014-2023, per quarter
  • Premium Statistic National NCREIF Property Index returns in the U.S. 2007-2023
  • Premium Statistic Share of commercial real estate investments in the U.S. 2021-2023, by investor type
  • Premium Statistic Value of U.S. commercial construction from 2002 to 2022
  • Premium Statistic Size of commercial property remodeling market U.S. 2013-2022, with forecast for 2023

Overview

  • Premium Statistic Most attractive property sectors for investment in the Americas 2017-2023

    Topic: Commercial real estate in the U.S. (7)

    Most attractive property sectors for investment in the Americas 2017-2023

    Most attractive property sectors for investment purchase in the Americas from 2017 to 2023

  • Premium Statistic Index of commercial property prices in the U.S. 2014-2023, per quarter

    Topic: Commercial real estate in the U.S. (8)

    Index of commercial property prices in the U.S. 2014-2023, per quarter

    Index of commercial property prices in the United States from 1st quarter 2014 to 3rd quarter 2023

  • Premium Statistic National NCREIF Property Index returns in the U.S. 2007-2023

    Topic: Commercial real estate in the U.S. (9)

    National NCREIF Property Index returns in the U.S. 2007-2023

    Returns of the national NCREIF Property Index in the United States from 2007-2023

  • Premium Statistic Share of commercial real estate investments in the U.S. 2021-2023, by investor type

    Topic: Commercial real estate in the U.S. (10)

    Share of commercial real estate investments in the U.S. 2021-2023, by investor type

    Share of commercial real estate investments in the United States from 2021 to 2023, by investor type

    See Also
    Sales Activity Remains Slow as Discounted Office Sales Jump to 30% How Much Does It Cost to Rent a Retail Space? - Speed Commercial Real EstateIndustrial Rents Climb 4.4% Amid Record-Setting Supply & Vacancy LevelsHow to Calculate Commercial Rents Per Square Foot — The Cauble Group
  • Premium Statistic Value of U.S. commercial construction from 2002 to 2022

    Topic: Commercial real estate in the U.S. (11)

    Value of U.S. commercial construction from 2002 to 2022

    Value of U.S. commercial construction put in place from 2002 to 2022 (in billion U.S. dollars)

  • Premium Statistic Size of commercial property remodeling market U.S. 2013-2022, with forecast for 2023

    Topic: Commercial real estate in the U.S. (12)

    Size of commercial property remodeling market U.S. 2013-2022, with forecast for 2023

    Size of commercial property remodeling market in the United States from 2013 to 2023 (in billion U.S. dollars)

Market segments

8
  • Premium Statistic U.S. value of new private sector commercial construction by subsector 2010-2022
  • Premium Statistic Value of commercial and industrial construction starts in the U.S. 2023, by type
  • Premium Statistic Commercial real estate investment value in the U.S. 2019-2023, by property type
  • Premium Statistic Market cap of REITs in the U.S. 2019-2023, by property type
  • Premium Statistic National NCREIF Property Index annual return in the U.S. 2024, by property type
  • Premium Statistic Commercial real estate cap rates in the U.S. 2012-2023 with a forecast until 2024
  • Premium Statistic Vacancy rate of commercial real estate in the U.S. 2020-2024, by property type
  • Premium Statistic Commercial real estate delinquency rate in the U.S. 2020-2024, by asset class

Market segments

  • Premium Statistic U.S. value of new private sector commercial construction by subsector 2010-2022

    Topic: Commercial real estate in the U.S. (13)

    U.S. value of new private sector commercial construction by subsector 2010-2022

    Value of new private sector commercial construction put in place in the U.S. from 2010 to 2022, by subsector (in billion U.S. dollars)

  • Premium Statistic Value of commercial and industrial construction starts in the U.S. 2023, by type

    Topic: Commercial real estate in the U.S. (14)

    Value of commercial and industrial construction starts in the U.S. 2023, by type

    Value of commercial, institutional, and industrial construction starts in the United States in 2023, by property type (in billion U.S. dollars)

  • Premium Statistic Commercial real estate investment value in the U.S. 2019-2023, by property type

    Topic: Commercial real estate in the U.S. (15)

    Commercial real estate investment value in the U.S. 2019-2023, by property type

    Value of commercial real estate investment in the United States from 2019 to 2023, by property type (in billion U.S. dollars)

  • Premium Statistic Market cap of REITs in the U.S. 2019-2023, by property type

    Topic: Commercial real estate in the U.S. (16)

    Market cap of REITs in the U.S. 2019-2023, by property type

    Market cap of real estate investment trusts (REITs) in the United States from 2019 to 2023, by property type (in billion U.S. dollars)

  • Premium Statistic National NCREIF Property Index annual return in the U.S. 2024, by property type

    Topic: Commercial real estate in the U.S. (17)

    National NCREIF Property Index annual return in the U.S. 2024, by property type

    Annual return of the national NCREIF Property Index in the United States in 1st quarter 2024, by property type

  • Premium Statistic Commercial real estate cap rates in the U.S. 2012-2023 with a forecast until 2024

    Topic: Commercial real estate in the U.S. (18)

    Commercial real estate cap rates in the U.S. 2012-2023 with a forecast until 2024

    Commercial real estate capitalization rates in the United States from 2012 to 2023 with a forecast until 2026, by property type

  • Premium Statistic Vacancy rate of commercial real estate in the U.S. 2020-2024, by property type

    Topic: Commercial real estate in the U.S. (19)

    Vacancy rate of commercial real estate in the U.S. 2020-2024, by property type

    Vacancy rate of commercial real estate in the United States from 1st quarter 2020 to 1st quarter of 2024, by property type

  • Premium Statistic Commercial real estate delinquency rate in the U.S. 2020-2024, by asset class

    Topic: Commercial real estate in the U.S. (20)

    Commercial real estate delinquency rate in the U.S. 2020-2024, by asset class

    Share of delinquent commercial real estate mortgages in the United Sates from 2020 to 2024, by asset class

    See Also
    United States Commercial Property Prices Per Square Foot

Leading markets

9
  • Premium Statistic Leading U.S. markets for commercial property acquisitions in 2023
  • Premium Statistic Recommendations to buy, hold or sell an office property in the U.S. 2024, by city
  • Premium Statistic Recommendations to buy, hold or sell an industrial property in the U.S. 2024, by city
  • Premium Statistic Recommendations to buy, hold, or sell a retail property in the U.S. 2024, by city
  • Premium Statistic Recommendations to buy, hold or sell a hotel property in the U.S. 2024, by city
  • Premium Statistic Absorption of office space in the largest U.S. markets 2023
  • Premium Statistic Industrial and logistics real estate net absorption in the U.S. 2023, by market
  • Premium Statistic Retail property investment volumes in major metropolitan areas in the U.S. 2023
  • Premium Statistic Hotel property investment volumes in leading metropolitan areas in the U.S. 2023

Leading markets

  • Premium Statistic Leading U.S. markets for commercial property acquisitions in 2023

    Topic: Commercial real estate in the U.S. (21)

    Leading U.S. markets for commercial property acquisitions in 2023

    Leading metros for commercial property acquisitions in the United States in 2023 (in billion U.S. dollars)

  • Premium Statistic Recommendations to buy, hold or sell an office property in the U.S. 2024, by city

    Topic: Commercial real estate in the U.S. (22)

    Recommendations to buy, hold or sell an office property in the U.S. 2024, by city

    Recommendations to buy, hold or sell an office property in the United States in 2024, by city

  • Premium Statistic Recommendations to buy, hold or sell an industrial property in the U.S. 2024, by city

    Topic: Commercial real estate in the U.S. (23)

    Recommendations to buy, hold or sell an industrial property in the U.S. 2024, by city

    Recommendations to buy, hold or sell an industrial property in the United States in 2024, by city

  • Premium Statistic Recommendations to buy, hold, or sell a retail property in the U.S. 2024, by city

    Topic: Commercial real estate in the U.S. (24)

    Recommendations to buy, hold, or sell a retail property in the U.S. 2024, by city

    Recommendations to buy, hold, or sell a retail property in the United States in 2024, by city

  • Premium Statistic Recommendations to buy, hold or sell a hotel property in the U.S. 2024, by city

    Topic: Commercial real estate in the U.S. (25)

    Recommendations to buy, hold or sell a hotel property in the U.S. 2024, by city

    Recommendations to buy, hold or sell a hotel property in the United States in 2024, by city

  • Premium Statistic Absorption of office space in the largest U.S. markets 2023

    Topic: Commercial real estate in the U.S. (26)

    Absorption of office space in the largest U.S. markets 2023

    Absorption of office space in the United States in the 4th quarter 2023, by market (in 1,000 square feet)

  • Premium Statistic Industrial and logistics real estate net absorption in the U.S. 2023, by market

    Topic: Commercial real estate in the U.S. (27)

    Industrial and logistics real estate net absorption in the U.S. 2023, by market

    Absorption rate of industrial and logistics real estate in the United States in 2023, by market (in million square feet)

  • Premium Statistic Retail property investment volumes in major metropolitan areas in the U.S. 2023

    Topic: Commercial real estate in the U.S. (28)

    Retail property investment volumes in major metropolitan areas in the U.S. 2023

    Leading metropolitan areas for retail real estate investments in the United States in 2023, by investment volume (in million U.S. dollars)

  • Premium Statistic Hotel property investment volumes in leading metropolitan areas in the U.S. 2023

    Topic: Commercial real estate in the U.S. (29)

    Hotel property investment volumes in leading metropolitan areas in the U.S. 2023

    Leading metropolitan areas for hotel real estate investments in the United States from 4th quarter 2022 to 4th quarter 2023, by investment volume

Leading companies

6
  • Premium Statistic Market value of the leading real estate companies worldwide 2023
  • Premium Statistic Leading REITs worldwide 2024, by market cap
  • Premium Statistic Market cap of leading office REITs in the U.S. 2019-2023
  • Premium Statistic Market cap of leading industrial and logistics REITs in the U.S. 2019-2023
  • Premium Statistic Market cap of leading retail REITs in the U.S. 2019-2023
  • Premium Statistic Market cap of leading lodging and resort REITs in the U.S. 2019-2023

Leading companies

  • Premium Statistic Market value of the leading real estate companies worldwide 2023

    Topic: Commercial real estate in the U.S. (30)

    Market value of the leading real estate companies worldwide 2023

    Market value of the leading public real estate companies worldwide in 2023 (in billion U.S. dollars)

  • Premium Statistic Leading REITs worldwide 2024, by market cap

    Topic: Commercial real estate in the U.S. (31)

    Leading REITs worldwide 2024, by market cap

    Leading real estate investment trusts (REITs) worldwide as of April 11, 2024, by market capitalization (in billion U.S. dollars)

  • Premium Statistic Market cap of leading office REITs in the U.S. 2019-2023

    Topic: Commercial real estate in the U.S. (32)

    Market cap of leading office REITs in the U.S. 2019-2023

    Leading office real estate investment trusts (REITs) in the United States from 2019 to 2023, by market capitalization (in billion U.S. dollars)

  • Premium Statistic Market cap of leading industrial and logistics REITs in the U.S. 2019-2023

    Topic: Commercial real estate in the U.S. (33)

    Market cap of leading industrial and logistics REITs in the U.S. 2019-2023

    Leading industrial and logistics real estate investment trusts (REITs) in the United States from 2019 to 2023, by market capitalization (in billion U.S. dollars)

  • Premium Statistic Market cap of leading retail REITs in the U.S. 2019-2023

    Topic: Commercial real estate in the U.S. (34)

    Market cap of leading retail REITs in the U.S. 2019-2023

    Leading retail real estate investment trusts (REITs) in the United States from 2019 to 2023, by market capitalization (in billion U.S. dollars)

  • Premium Statistic Market cap of leading lodging and resort REITs in the U.S. 2019-2023

    Topic: Commercial real estate in the U.S. (35)

    Market cap of leading lodging and resort REITs in the U.S. 2019-2023

    Leading lodging and resort real estate investment trusts (REITs) in the United States from 2019 to 2023, by market capitalization (in billion U.S. dollars)

Rent and vacancy rates

6
  • Premium Statistic Office rent per square foot in the largest office markets in the U.S. 2023
  • Premium Statistic Vacancy rate of office space in the U.S. 2023, by market
  • Premium Statistic Industrial and logistics real estate rent per square foot in the U.S. 2024, by market
  • Premium Statistic Industrial and logistics real estate vacancy rate in the U.S. 2024, by market
  • Premium Statistic Average rent of shopping centers in the U.S. 2020-2024, by region
  • Premium Statistic Retail real estate vacancy rates in the U.S. 2021-2023, by type

Rent and vacancy rates

  • Premium Statistic Office rent per square foot in the largest office markets in the U.S. 2023

    Topic: Commercial real estate in the U.S. (36)

    Office rent per square foot in the largest office markets in the U.S. 2023

    Average annual quoted rent per square foot in selected office markets in the United States in 4th quarter 2023, by market (in U.S. dollars)

  • Premium Statistic Vacancy rate of office space in the U.S. 2023, by market

    Topic: Commercial real estate in the U.S. (37)

    Vacancy rate of office space in the U.S. 2023, by market

    Vacancy rate in the largest office markets in the United States in 4th quarter 2023

  • Premium Statistic Industrial and logistics real estate rent per square foot in the U.S. 2024, by market

    Topic: Commercial real estate in the U.S. (38)

    Industrial and logistics real estate rent per square foot in the U.S. 2024, by market

    Annual average asking rent per square foot for industrial and logistics real estate in the United States in 1st quarter 2024, by market (in U.S. dollars)

  • Premium Statistic Industrial and logistics real estate vacancy rate in the U.S. 2024, by market

    Topic: Commercial real estate in the U.S. (39)

    Industrial and logistics real estate vacancy rate in the U.S. 2024, by market

    Vacancy rate of industrial and logistics real estate in the United States in 1st quarter 2024, by market

  • Premium Statistic Average rent of shopping centers in the U.S. 2020-2024, by region

    Topic: Commercial real estate in the U.S. (40)

    Average rent of shopping centers in the U.S. 2020-2024, by region

    Average monthly asking rent for shopping center space in the retail real estate market in the United States from 2020 to 2024, by region (in U.S. dollars per square foot)

  • Premium Statistic Retail real estate vacancy rates in the U.S. 2021-2023, by type

    Topic: Commercial real estate in the U.S. (41)

    Retail real estate vacancy rates in the U.S. 2021-2023, by type

    Retail real estate vacancy rates in the United States from 2021 to 2023, by type of property

Topic: Commercial real estate in the U.S. (2024)

FAQs

What is the forecast for commercial real estate in the US? ›

Commercial Real Estate - United States

The Commercial Real Estate market market in the United States is anticipated to reach a staggering US$25.28tn by the year 2024. This projection indicates a significant annual growth rate (CAGR 2024-2029) of 2.18%, leading to a market volume of US$28.16tn by 2029.

Read More ›
What is the biggest problem in commercial real estate? ›

CRE Trend #1: Changing Market Dynamics and its Challenges. In 2023, post-pandemic challenges, labor shortages, inflation, energy crisis, and disruptions in the supply chains hit the industry again. Global market instability is the primary factor that sets the context for commercial real estate.

View More ›
How big is the commercial real estate market in the United States? ›

The estimated total dollar value of commercial real estate was $20.7 trillion as of 2021:Q2. This research note summarizes a study by Nareit primarily using data from CoStar that estimates the total dollar value of commercial real estate was $20.7 trillion as of 2021:Q2.

View Details ›
What is the commercial real estate outlook for 2024? ›

Commercial real estate investment activity likely will begin to pick up in the second half of 2024. The normalization of hybrid working arrangements will continue to limit the growth of office demand.

Explore More ›
Is it a good time to invest in commercial real estate? ›

Depending on your tolerance for risk, there could be some commercial real estate opportunities in 2021 and beyond. “The pandemic accelerated trends such as the hybrid work model and the rise of ecommerce, both of which we'll likely continue to see increase," said Dunn.

Continue Reading ›
What do you consider to be the single biggest challenge facing the commercial real estate industry and why? ›

Rising interest rates

Commercial property prices and interest rates are inextricably linked. Rising rates have a negative effect on property valuations. Unfortunately for the commercial real estate industry, interest rates have been skyrocketing.

Read The Full Story ›
Who owns the most commercial real estate in the US? ›

In addition, all of the top five firms own commercial real estate in all regions across the U.S., as well as internationally. CBRE Investment Management tops this year's list of leading commercial property owners, with more than 321 million square feet owned across a diverse array of asset types.

View More ›
What is the largest commercial real estate company in the US? ›

2. CBRE. CBRE is the country's largest commercial real estate broker, generating more than $30 billion of revenue per year.

Discover More ›
How do rising interest rates affect commercial real estate? ›

Higher borrowing costs tend to dampen commercial property prices directly by making investments in the sector more expensive, but also indirectly by slowing economic activity and reducing the demand for such properties.

Read The Full Story ›
How much commercial real estate debt is coming due in 2024? ›

One-fifth, or $929 billion, of the $4.7 trillion of outstanding commercial mortgages held by U.S. lenders and investors will come due in 2024, according to the Mortgage Bankers Association (MBA)'s 2023 Commercial Real Estate (CRE) Survey of Loan Maturity Volumes.

Discover More ›

Will there be a housing recession in 2024? ›

Experts overwhelmingly say that the housing market isn't going to crash anytime soon. The last housing crash helped cause today's lack of supply, which is what's keeping prices from falling. Mortgage rates, however, are expected to fall this year. This will help make homeownership more affordable.

Know More ›
What is the commercial lending forecast for 2024? ›

WASHINGTON, D.C. (January 23, 2024) — Total commercial and multifamily mortgage borrowing and lending is expected to rise to $576 billion in 2024, which is a 29 percent increase from 2023's estimated total of $444 billion.

Know More ›
What is the outlook for commercial lending? ›

The Mortgage Bankers Association expects commercial loan origination to rise to $576 billion in 2024, a 29% increase from 2023's estimated total of $444 billion.

View More ›
What is the outlook for New York commercial real estate? ›

Current Trends in Commercial Real Estate

In the office real estate sector, there's an uptick in occupancy levels, suggesting a rebound from the pandemic's impact. By December 2023, Manhattan office occupancy hit 52%, with over half of the workforce returning to desks on weekdays.

See Details ›

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