How Has the Office Buildings Market Size Evolved in Recent Years?
The office buildings market has seen considerable growth due to a variety of factors.
• Recently, there has been a slight increase in the market size of office buildings. It is forecasted to rise from $559.82 billion in 2024 to $570.62 billion in 2025, registering a compound annual growth rate (CAGR) of 1.9%. Factors such as economic development, business growth, the rise of urban and commercial hubs, corporate mergers and relocations, changes in workplace culture, and governmental policies and zoning laws contributed to the past period's expansion.
What Is The Forecast For The Office Buildings Market?
The Office Buildings market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the office buildings market size is anticipated to undergo consistent growth. It is projected to increase to $628.29 billion in 2029, reflecting a compound annual growth rate (CAGR) of 2.4%.
The growth expected during the forecast period can be credited to factors like sustainability and green building techniques, the rise of remote work and flexible office arrangements, the integration of advanced technology for better efficacy, mixed-use developments, and an emphasis on corporate wellness and the employee experience. Some key trends in the forecast period are a focus on enhancing the employee experience, the inclusion of biophilic design components, introduction of contactless technologies, agile and adaptable office furniture, and retrofitting aimed at boosting energy efficiency.
What Are The Essential Drivers Behind The Growth Of The Office Buildings Market?
The growth of the office buildings market is projected to be driven by the increased demand from businesses seeking to expand. When a company aims to broaden its operational scope and increase profits, it naturally leads to growth within the organization. This growth necessitates the hiring of additional personnel to support the expanded operations, thereby requiring more office space to house these new employees. As an example, Airwallex, a fintech firm based in the UK, conducted a survey in October 2022 involving 500 UK-based small and medium-sized enterprises (SMEs). The study revealed that in 2023, 70% of these businesses intend to extend, or further extend, their reach into foreign markets. Among the surveyed businesses, two-thirds (64%) are setting their sights on Europe and North America, while one third (34%) are preparing to venture into the Middle East, Latin America, Africa, and the Asia-Pacific region. Hence, the increasing demand from expanding firms is accelerating the growth of the office buildings market.
How Is The Global Office Buildings Market Divided Into Key Segments?
The office buildings market covered in this report is segmented –
1) By Building Type: Smart Buildings, Traditional Buildings
2) By Construction Type: New Construction, Renovation
3) By Application: Owned, Rental
4) By End User: Private, Public
Subsegments:
1) By Smart Buildings: Energy-Efficient Buildings, Automated Buildings, Green-Certified Buildings, IoT-Integrated Buildings, Connected Buildings
2) By Traditional Buildings: Conventional Office Buildings, Historic Or Heritage Buildings, Modular Buildings, Flex Space Offices, Other Traditional Office Structures
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What Trends Are Reshaping The Future Of The Office Buildings Market?
A significant shift towards sustainability and energy-efficient workspaces is becoming increasingly prevalent in the office buildings market. Major enterprises operating within this sector are adopting green practices to achieve their net-zero carbon targets and cater to the expectations of the incoming workforce. For instance, Adobe, a software firm based in the US, inaugurated its eco-friendly office in San Jose, California, in March 2023. This fully-electric building is powered by renewable energy sources like solar and wind. It employs distinctive glass material to minimize the influx of heat and cold into the structure. Moreover, the building practices responsible waste management by recycling 90% of its waste instead of ending up in landfills. The office also opted for air source heat pumps for temperature control as an alternative to traditional furnaces.
Who Are the Key Players In The Office Buildings Market?
Major companies operating in the office buildings market include:
• Kiewit Building Group Inc.
• Toll Brothers Inc.
• CBRE Group Inc.
• Bouygues S.A.
• Jacobs Solutions Inc.
• China Railway Construction Corporation Limited
• Power Construction Corp.
• China State Construction Engineering Co. Ltd.
• Jones Lang LaSalle Inc.
• Colliers International India Property Services Pvt. Ltd.
• Skanska AB
• Gilbane Building Company
• Holcim Ltd.
• The Korte Company
• W.G. Yates & Sons Construction Co.
• Cushman & Wakefield plc
• Newmark Knight Frank
• Transwestern Development Company
• Marcus & Millichap Inc.
• Eastdil Secured International Ltd.
• Savills plc
• Avison Young Inc.
• Kidder Mathews Inc.
• Lee & Associates Commercial Real Estate Services.
• Berkshire Hathaway HomeServices
• Keller Williams Realty Inc.
• Coldwell Banker Real Estate LLC
• RE/MAX LLC
• Sotheby's International Realty LLC
• Simon Property Group plc
• Kilroy Realty Corp.
• Realty Income Corporation
• Prologis Inc.
• Alexandria Real Estate Equities Inc.
• Boston Properties Inc.
• Vornado Realty Trust
What Are The Regional Insights Into The Office Buildings Market?
Europe was the largest region in the office buildings market in 2024. Asia-Pacific is expected to be the fastest-growing region in the office buildings market report during the forecast period. The regions covered in the office buildings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
