Enjoy complimentary customisation on priority with our Enterprise License!
The REIT market is estimated to grow by USD 333.01 billion at a CAGR of 2.8% between 2022 and 2027. The increase in global demand for warehousing and storage facilities is driven by the growth of e-commerce and the need for efficient logistics solutions. The growing residential sector globally is driving demand for storage solutions for personal belongings. Increasing support from the government, such as incentives for infrastructure development, is also contributing to market growth. Overall, these factors are creating opportunities for companies in the warehousing and storage industry to expand their operations and meet the growing demand for storage solutions.
To learn more about this report, Download Report Sample
This report extensively covers market segmentation by type (industrial, commercial, and residential), application (warehouses and communication centers, self-storage facilities and data centers, and others), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The real estate investment trust market share growth of the industrial segment will be significant during the forecast period. The growth of the segment is driven by the increasing demand for storage space in the industrial segment. In addition, the COVID-19 pandemic has boosted online sales by increasing warehouse space. Supply chain problems have forced industrial companies to rent more warehouse space to store additional inventory. This increases demand for occupancy and rental levels.
Get a glance at the market contribution of various segments Request a PDF Sample
The industrial segment was valued at USD 1473.24 billion in 2017. More and more online consumers on various online shopping portals are propelling e-commerce companies to set up warehouses and delivery centers near major cities. All such factors provide significant expansion opportunities for industrial REITs, which in turn will boost the growth of the focus market during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
North America is estimated to contribute 63% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The real estate investment trust market in North America dominated the global REIT market in 2022. It is expected to continue its dominance during the forecast period. With the growth of industries such as manufacturing, food, and beverages, chemical and e-commerce, and proliferating trade, the region is further expected to foster the growth of the market during the forecast period. The low vacancy rate of around 3%-6% of industrial spaces such as storage and warehouses has increased the rent prices for the storage and warehouse facilities in the US. Self-owned warehouses are not very popular as they are capital-intensive. Hence, many end-user industries prefer leased storage and warehouses for their business, which will drive the market in the Americas during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the real estate investment trust market.
RioCan Real Estate Investment Trust - The company offers REIT for retail-focused properties and mixed-use developments. This segment focuses on owning, developing, managing and operating retail-focused properties and mixed-use developments located in Canada.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market is undergoing significant development, driven by the ambitious vision outlined in Saudi Vision 2030. The market offers investors alternative investments with attractive dividend yields and tax exemptions. The Capital Markets Authority (CMA) plays a crucial role in regulating the market, and ensuring the quality of assets and underlying real estate. REITs provide investors with exposure to the real estate sector through investment products that offer rental income and potential capital gains. Despite challenges such as inflation and market downturns, REITs remain a viable option for long-term investors looking to diversify their portfolios. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increase in global demand for warehousing and storage facilities is notably driving real estate investment trust market growth. Warehouses and storage facilities play a crucial role in storing a variety of products, including automobiles, chemicals, food and beverages, pharmaceuticals, FMCG, and electronics. These facilities are essential for manufacturers, importers, exporters, and logistics providers to store both finished and semi-finished goods. The growth of warehouse and storage space is expected to have a positive impact on demand in the global market. Constructing new warehouses and storage facilities requires substantial capital investment. Manufacturers, importers, exporters, and logistics providers utilize warehouses to store both finished and semi-finished goods.
The growth of warehouse and storage space is expected to have a positive impact on demand in the global market. This is because constructing new warehouses and storage facilities requires substantial capital investment. Additionally, high real estate costs contribute to increased construction expenses across different industries. The rising demand for storage and warehousing services is expected to drive the growth of the global REIT market in the forecast period.
The emergence of self-storage as a service is the primary trend in the real estate investment trust market. Self-storage refers to a system where Companies rent storage space, such as private rooms, closets, box storage, and vehicle storage, to businesses or individuals. The emergence of self-storage services is mainly due to the growing demand for self-storage from the growing pharmaceutical, chemical, e-commerce, food and beverage, automotive, electronics and other manufacturers. Self-storage can be both temperature-controlled and non-temperature-controlled. Depending on the type and characteristics of the product, different self-storage options are used. Special air-conditioning containers are used to store temperature and climate-sensitive products. In these containers, the humidity is regulated to maintain a relative humidity of 50-60%. Non-air-conditioned self-service systems are outdoor storage units used for storing household items, clothing and electronic equipment. The development and growth of self-storage as a service will drive the growth of the global REIT market during the forecast period.
Vertical integration by e-commerce companies is the major challenge impeding the real estate investment trust market growth. Global online shopping has grown in recent years. The rising internet connectivity around the world increased the growth of e-commerce and made it difficult for traditional retailers to grow. The growth of online sales worldwide has increased the number of goods sold through online channels. As a result, global e-commerce companies such as Amazon, Alibaba, JD.com and IKEA are opening their warehouses to cope with the increase in sales volumes. In November 2021, Alibaba's logistics company Cainiao announced a long-term plan to build its smart warehouse network in Southeast Asia, including Vietnam, Indonesia, Malaysia and Singapore. The network formed by Cainiao Hubs covers a total area of ??nearly 2.5 million square meters. Cainiao also announced a joint venture to invest USD 1.5 billion in Hong Kong International Airport to develop a digital logistics hub by 2023. The logistics centre would include goods handling facilities, sorting centres and order fulfilment centres. Such investments will hinder the growth of the market in focus during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market encompasses a diverse range of factors and influences. Asset allocation strategies play a crucial role in investment portfolios, with equities often favored for their potential returns. Berkshire Hathaway, known for its Class B shares, is a prominent player in the market. Financial performance is a key consideration for investors seeking a financially stable retired life. Market volatility and market swings can impact investment moves, necessitating diligence in decision-making. Regulatory frameworks, including oversight by the Securities and Exchange Commission and Saudi Arabia's Capital Markets Authority (CMA), shape the landscape for Sharia-compliant products and real estate investment trusts (REITs). Factors such as population influx and job growth can drive home sales revenue and property price correction, impacting the long-term performance of REITs.
The market is influenced by various factors and trends. Local markets and global averages impact market capitalizations and investment strategies. Homebuilders and home construction companies play a role in providing product offerings and fulfilling new orders. Economic conditions such as an economic slowdown or recession can affect home sales orders and retirement funds. Regulations and tax liabilities are important considerations for investment options and tax-free benefits. SWFs (Sovereign Wealth Funds) may also invest in REITs, considering the underlying quality of real estate. Social Security and retirement age are factors affecting retirement planning and Social Security spousal benefits. 13F quarterly reports and insights from The Associated Press can provide valuable information for investors.
Market Scope |
|
Report Coverage |
Details |
Page number |
152 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.8% |
Market growth 2023-2027 |
USD 333.01 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.6 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 63% |
Key countries |
US, Japan, Singapore, UK, and Germany |
Competitive landscape |
Leading Companies , Market Positioning of Companies , Competitive Strategies, and Industry Risks |
Key companies profiled |
Automotive Properties REIT, CapitaLand Integrated Commercial Trust Management Ltd., Deutsche WohnenDeutsche Wohnen SE, Dexus Group, Federal Realty Investment Trust, FIBRA Prologis, Gecina REIT SA, GPT Management Holdings Ltd., Iron Mountain Inc., Japan Real Estate Investment Corp., Klepierre Reit SA, Link Asset Management Ltd., Mirvac Group, NorthWest Healthcare Properties, Omega Healthcare Investors Inc., RioCan Real Estate Investment Trust, Segro Plc, STAG Industrial Inc., Stockland Corp. Ltd., and W. P. Carey Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.