PUBLISHER: The Business Research Company | PRODUCT CODE: 1566713
PUBLISHER: The Business Research Company | PRODUCT CODE: 1566713
Industrial real estate pertains refers to commercial properties designated for industrial use, such as manufacturing, warehousing, distribution, research and development (R&D), and logistics. These properties are specifically designed and equipped to support various industrial functions and generally include features such as high ceilings, expansive floor areas, heavy-duty flooring, loading docks, and access to transportation infrastructure.
The primary types of industrial real estate include industrial, retail, office, and warehousing properties. Retail real estate covers properties used for commercial purposes, such as shopping centers, stores, and other retail venues. These properties come in various sizes including small, medium, and large, and serve different functions including manufacturing, distribution, logistics, research and development, data centers, and more.
The industrial real estate market research report is one of a series of new reports from The Business Research Company that provides industrial real estate market statistics, including industrial real estate industry global market size, regional shares, competitors with an industrial real estate market share, detailed industrial real estate market segments, market trends, and opportunities, and any further data you may need to thrive in the industrial real estate industry. This industrial real estate market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The industrial real estate market size has grown strongly in recent years. It will grow from $95.42 billion in 2023 to $101.66 billion in 2024 at a compound annual growth rate (CAGR) of 6.5%. The growth during the historic period can be attributed to the rising demand for industrial spaces, an increase in foreign direct investment, growth in manufacturing activities, expansion of e-commerce activities, and the availability of affordable land and labor.
The industrial real estate market size is expected to see strong growth in the next few years. It will grow to $131.57 billion in 2028 at a compound annual growth rate (CAGR) of 6.7%. The growth during the forecast period can be attributed to rising infrastructure development, increasing urbanization, higher trade volumes, growing consumer expectations, and supply chain optimization. Major trends in the forecast period include the adoption of smart technologies, automation and smart warehousing, predictive maintenance, digital twin technology, robotics, and big data and analytics.
The growth of the industrial real estate market is expected to continue as construction activities increase. These activities encompass the physical development of buildings, infrastructure, and other structures. The rise in construction and real estate activities is driven by rapid urbanization, infrastructure development, and a focus on precision and efficiency in building projects. Industrial real estate plays a crucial role by providing the infrastructure, facilities, and logistical support necessary to streamline operations, improve efficiency, and facilitate the construction process from planning to completion. For instance, in February 2024, according to Eurostat, a Europe-based government agency, the average annual building production in the EU and the euro area increased by 0.1% and 0.2%, respectively, compared to 2022. Additionally, in December 2021, the United States Census Bureau reported a rise in the value of construction activities from $1,626.4 billion in 2021 to $1,792.9 billion in 2022, reflecting a growth rate of 10.2 percent. Thus, the increasing construction activities drive growth in the industrial real estate market.
Key players in the industrial real estate market are investing in real estate projects to expand their property portfolios, improve logistics capabilities, and meet the growing demand for modern industrial spaces. These investments reflect a strategic focus on capitalizing on the rapidly growing industrial real estate sector through large-scale, sustainable developments. For instance, in December 2023, Panattoni Development Company, a US-based industrial real estate firm, invested over USD 101.4 million (€100 million) in India to significantly boost its presence there. The company plans to invest $100 million annually in India for several years to develop industrial warehouses in major markets such as Delhi NCR, Mumbai, Bengaluru, Chennai, and Pune.
In October 2022, Prologis Inc., a US-based provider of logistics real estate solutions, acquired Duke Realty Corporation for $23 billion. This acquisition aims to enhance Prologis's position by expanding its portfolio, improving operational efficiencies, and increasing its market share in key geographic regions. Duke Realty Corporation, a US-based real estate investment trust (REIT), specializes in the development and management of industrial and logistics properties.
Major companies operating in the industrial real estate market are CBRE Group Inc., Jones Lang LaSalle Incorporated, Cushman & Wakefield, Prologis Inc., Colliers International, Sealy & Company LLC, Exeter Property Group, Duke Realty Corporation, Hillwood Development Company, Stag Industrial Inc., Rexford Industrial Realty Inc., First Industrial Realty Trust, EastGroup Properties Inc., Trammell Crow Company, Rockefeller Group, Terreno Realty Corporation, Panattoni Development Company, Dermody Properties LLC, Bridge Development Partners LLC, Conor Commercial Real Estate, Avison Young, CenterPoint Properties, Lincoln Property Company, Clarion Partners
North America was the largest region in the industrial real estate market in 2023. The regions covered in the industrial real estate market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the industrial real estate market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The industrial real estate market includes revenues earned by entities through the leasing, development, management, and sale of industrial properties such as warehouses, distribution centers, manufacturing facilities, and industrial parks. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Industrial Real Estate Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on industrial real estate market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for industrial real estate ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The industrial real estate market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.