What is the total value of commercial real estate in the US?
The total size of commercial real estate in the U.S. was estimated $16 trillion in 2018. Nareit estimates that the 2018 total dollar value of commercial real estate was between $14 and $17 trillion, with a mid-point of $16 trillion. This study was conducted primarily using data from CoStar and other sources.
What commercial real estate means?
Commercial real estate (CRE) is property that is used exclusively for business-related purposes or to provide a workspace rather than as a living space, which would instead constitute residential real estate. Most often, commercial real estate is leased to tenants to conduct income-generating activities.
Is there money in commercial real estate?
There is a lot of money to be made in commercial real estate. In many positions in our industry, people can earn from $80,000 to almost $250,000 between salary and bonuses.
How much commercial real estate is owned by REITs?
We estimate that REITs hold 10% of total commercial real estate (see chart 1). The total commercial real estate market, however, includes many properties that are not institutional grade investments due to their age, quality, location or other characteristics.
How big is US real estate market?
In January 2021, the average new home was sold for 408,800 U.S. dollars. The U.S. housing market reached its trough in 2011, and the volume of home sales began to increase again. There were 820,000 houses sold in the United States in 2020 – the largest figure since 2008.
What are examples of commercial real estate?
Commercial property includes office buildings, medical centers, hotels, malls, retail stores, multifamily housing buildings, farm land, warehouses, and garages. In many states, residential property containing more than a certain number of units qualifies as commercial property for borrowing and tax purposes.
What is the GRM formula?
If you know the market GRM and the gross rental income the property generates, you can also use the gross rent multiplier formula to calculate what the property value is: Gross Rent Multiplier = Property Value / Gross Rental Income. Property Value = Gross Rental Income x Gross Rent Multiplier.
Is it hard to get into commercial real estate?
The industry can be quite competitive, and many positions in a commercial real estate company are difficult to get without experience. The common path many people take to gain industry in commercial real estate is to join a brokerage as an agent.
Who are the clients of total commercial real estate?
TCRE’s clientele includes; individual investors, family offices, trusts, attorneys, government agencies, banks, private equity funds, and multi-national corporations.
How much commercial real estate is built in the United States?
In 2019, some 85.25 billion U.S. dollars worth of commercial real estate were built in the United States. Vacancy rates in both the retail and industrial real estate sector were impacted by the COVID-19 pandemic and more than doubled in the first half of 2020.
How big is the commercial construction industry in the US?
The commercial construction industry in the United States has been steadily expanding since 2010. In 2018, some 89.52 billion U.S. dollars worth of commercial real estate were built in the United States.
What makes up the commercial property sector in the United States?
The U.S. commercial property sector is comprised of the following key segments: industrial, retail, office, lodging and amusement. The value of private office construction starts in the United States amounted to 8.12 billion U.S. dollars in the first half of 2019. Read more.