T
he global commercial real estate market is projected to grow by USD 384.46 billion from 2024-2028, at a CAGR of 4.36%, according to Technavio's latest report. The market's growth is driven by the increasing demand for commercial spaces, particularly in the Asia-Pacific region, which accounts for 44% of the market share. Key companies operating in this space include Atlas Technical Consultants LLC, CBRE Group Inc., and WeWork Inc.
The commercial real estate market is experiencing significant changes due to shifting work trends and corporate needs. The offices segment is growing as businesses adopt flexible arrangements, hybrid models, and technology usage. Co-working spaces like Regus and WeWork are providing flexible solutions, while companies such as Google and Amazon invest in innovative office designs.
However, the shift towards online shopping and remote work has impacted the commercial real estate market, leading to decreased demand for traditional retail spaces and office buildings. Businesses are adapting by incorporating co-working spaces, flexible workspaces, and virtual collaboration technologies, which challenges conventional commercial real estate models.
Technavio's report highlights key trends in the commercial real estate market, including:
* The increasing use of technology, such as smart offices and coworking spaces
* The growth of e-commerce and its impact on retail spaces
* The adoption of flexible work arrangements and hybrid models
* The importance of location and accessibility in commercial real estate
The report also provides insights into the market's segmentation by end-user (offices, retail, leisure, industrial, and others), channel (rental, lease, sales), and geography (APAC, North America, Europe, South America, and Middle East and Africa).
