How Has the Industrial Real Estate Market Evolved Historically and What is its Current Size?
The industrial real estate market has seen considerable growth due to a variety of factors.
• The industrial real estate market has expanded significantly in recent years. It will rise from $101.66 billion in 2024 to $108.6 billion in 2025, reflecting a CAGR of 6.8%.
This growth is fueled by the increasing need for industrial spaces, higher foreign direct investment, growing manufacturing activities, e-commerce growth, and the availability of affordable land and labor.
What is the Forecasted Market Size and CAGR for the Industrial Real Estate Market?
The industrial real estate market is expected to maintain its strong growth trajectory in upcoming years.
• The industrial real estate market is projected to reach $140.07 billion by 2029 with a CAGR of 6.6%.
Growth is attributed to infrastructure development, urbanization, increasing trade volumes, rising consumer expectations, and supply chain optimization. Major trends include adoption of smart technologies, automation, predictive maintenance, robotics, and big data analytics.
What Key Factors and Trends Are Driving The Growth Industrial Real Estate Market?
The increasing construction activity is projected to boost the growth of the industrial real estate market. Construction includes the development of buildings, infrastructure, and other physical structures. The rise in construction is driven by urbanization, infrastructure growth, and efficiency demands. Industrial real estate supports construction by offering the necessary infrastructure, facilities, and logistics to streamline operations. According to the Office for National Statistics, UK construction spending increased by £18.16 billion in 2022, with private sector projects growing by 16.8%. Thus, rising construction activities are propelling the industrial real estate market.
What Are The Market Segments In The Industrial Real Estate Market?
The industrial real estate market covered in this report is segmented –
1) By Product: Industrial, Retail, Office, Warehousing
2) By Size: Small, Medium, Large
3) By Application: Manufacturing, Distribution, Logistics, Research And Development, Data Centers, Other Applications
Subsegments
1) By Industrial: Manufacturing Facilities, Distribution Centers, Industrial Parks
2) By Retail: Shopping Malls, Retail Stores, Hypermarkets & Supermarkets
3) By Office: Commercial Office Buildings, Co-working Spaces, Business Parks
4) By Warehousing: Cold Storage Facilities, Fulfillment Centers, Bulk Warehouses
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What New Trends Are Influencing The Industrial Real Estate Market?
Significant firms in the industrial real estate sector are funding numerous property projects to broaden their array of properties, improve their logistical functions, and cater to the escalating need for modern industrial premises. This investment demonstrates their tactical aim of capitalizing on the rapidly growing industrial real estate market via substantial, sustainable developments. For example, Panattoni Development Company, an American firm specializing in industrial real estate, poured in over USD 101.4 million (€100 million) into India in December 2023 marking a significant increase in its footprint in the region. They have disclosed plans to continue this investment pattern with an annual commitment of $100 million to establish industrial warehouses in prime locations such as Delhi NCR, Mumbai, Bengaluru, Chennai, and Pune in the upcoming years.
Who Are the Key Players In The Industrial Real Estate Market?
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
What Are The Regional Insights Into The Industrial Real Estate Market?
North America was the largest region in the industrial real estate market in 2024. The regions covered in the industrial real estate market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
