DUBLIN–(BUSINESS WIRE)–The “Commercial Real Estate Market – Growth, Trends, Impact of COVID-19, and Forecast (2022 – 2027)” report has been added to from ResearchAndMarkets.com offer.
The global commercial real estate market is expected to register a CAGR of over 10% during the forecast period.
The COVID-19 pandemic has severely affected the commercial real estate sector as travel restrictions and social distancing have affected public mobilization, commercial works and assembly facilities. The office sector, the retail sector and the hospitality sector are the most affected market segments during the pandemic. Additionally, the global market is now in a recovery phase as COVID-19 protocols are relaxed and sales are reaching pre-pandemic levels in the market.
The significant growth of the commercial real estate market is driven by urbanization, digitalization of the commercial sector and increasing foreign investment in the sector. For example, in 2021, foreign investment in the European commercial real estate market accounted for half of capital investment in this region, or almost 130 million euros.
Additionally, Asia-Pacific, China, and Canada saw growth in office space absorption, while Europe and the United States saw a decline in the rate. Additionally, Asia-Pacific leads in terms of retail sales and logistics warehouse uptake in the global market.
Main market trends
Office markets will experience increased growth
The office market has been hit hard by the pandemic globally. Despite the huge disruption, the market is now in the recovery phase. In addition, the increase in investments in the sector, stimulating the economic recovery of the market, and office rental activities are also growing.
In 2021, office occupancy saw robust growth of more than 80% in nearly 390 metropolitan cities around the world. Additionally, 30 million square feet (msf) of office space has been absorbed since the third quarter of 2021. Meanwhile, sector rent growth is in a slow recovery phase, EMEA has seen significant growth in rent growth.
Additionally, most office space is taken up by Class A offices with over 61%, followed by Class B and Class C offices with 32% and 7% respectively.
In addition, Asia-Pacific (APAC) is leading the office market, driven by growing population, growing GDP, middle-class consumers, working-age population taking advantage of office demand. In addition, the APAC region contributes more than 50% of office construction in the global market.
The retail sector is expected to experience significant growth
Despite the disruptions caused by the COVID-19 pandemic, the retail real estate sector has experienced significant growth that is underpinned by the digitalization of work, the transformation of physical retail and the move towards environmental considerations , Social and Governance (ESG). Additionally, the retail industry is facing many challenges from the e-commerce industry and changing customer behavior during the pandemic. Despite these challenges, the sector held its own, as e-commerce sales during the pandemic were only 14% of overall retail sales.
Additionally, to meet consumer demand and adapt to the changing retail environment, developers are focusing on different strategies. Such as remodeling malls for multiple purposes, customizing tenant mix, developing new rental models to attract the latest business models.
Additionally, to meet consumer demand, some retailers are expanding their business through omnichannel strategies, such as click-and-collect, curbside pickup, and ship-from-store by adopting new technologies.
Additionally, retail sales increased in the Asia-Pacific region, followed by the United States and Europe. Additionally, retail sales have seen growth in different segments such as retail stores, grocery stores, clothing, department stores, restaurants, and bars. In which in-store retail recorded the highest sales in 2021 compared to 2019.
Main topics covered:
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET OVERVIEW
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.2 Market constraints
4.2.3 Market opportunities
4.3 Supply Chain/Value Chain Analysis
4.4 Porter’s Five Forces Analysis
4.5 Impact of COVID-19 on the market
5 MARKET SEGMENTATION
5.1 By type
5.2 By geography
6 COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Key Players)
6.2 Company Profiles
6.2.1 Brookfield Asset Management Inc.
6.2.2 Prologis, Inc.
6.2.3 SIMON REAL ESTATE GROUP, LP
6.2.4 SHANNON WALTCHACK, LLC.
6.2.5 DLF Ltd.
6.2.6 Boston Properties, Inc.
6.2.8 Link Asset Management Limited
6.2.9 WANDA Group
6.2.10 Onni Contracting Ltd
6.2.11 MaxWell Real Estate
6.2.12 ATC IP LLC
6.2.13 Nakheel PJSC.
6.2.14 RAK Properties
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
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