Industrial real estate refers to properties specifically designed and utilized for industrial purposes, including manufacturing, warehousing, distribution and research and development. These properties are designed to accommodate businesses that require large spaces for production, storage and logistical operations.
The industrial real estate market consists of sales, by entities (organizations, sole traders, or partnerships), of industrial real estate that are used for manufacturing processes, assembly lines, storage and transportation hubs. They include large warehouses, distribution centers, production plants and specialized facilities such as data centers and research labs. These properties are often located in industrial parks, logistics hubs and near major transportation routes such as highways, railways, ports and airports to facilitate efficient goods movement.
The global industrial real estate market was valued at $223,187.16 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 3.00%.
Increasing Construction Activities
During the historic period, the increasing construction activities propelled the growth of the industrial real estate market. Industrial real estate is essential for construction activities as it provides space for manufacturing building materials, storing equipment and housing logistics hubs that support project execution. These facilities enable efficient supply chain management, reduce project delays and ensure the seamless delivery of materials to construction sites. For example, in 2024, according to an analysis of data from the US Census Bureau by Deloitte Touche Tohmatsu Limited, a France-based professional services company, in the USA, total construction spending was $1.98 trillion in 2023, up 7.4% from August 2022. Therefore, the increasing construction activities drove the growth of the industrial real estate market.
Strategic Partnerships Driving Growth In Industrial Real Estate
Companies operating in the industrial real estate market are focusing on developing strategic partnerships, such as real estate management solutions, to enable businesses to leverage complementary strengths, expand market reach, share resources and drive innovation while reducing risks and costs. Strategic partnerships are collaborative agreements between businesses or organizations designed to leverage shared resources, expertise and market opportunities to achieve mutual long-term goals and competitive advantages. For instance, in November 2024, Logistic Properties of the Americas, a US-based real estate company, partnered with Inmobiliaria y Constructora Alas, S.A. de C.V., a Mexico-based real estate developer to expand its presence in Mexico. LPA's partnership with Falcon strengthens its position in Mexico's fast-growing manufacturing sector by adding two operational properties, totaling 257,677 square feet of gross lease area, with DHL as the anchor tenant. Additionally, this strategic alliance enhances LPA's regional presence by providing immediate access to Falcon's 65+ years of expertise in Mexico's industrial and logistics market, well-established relationships with key landowners and a robust local network of clients and developers.
The global industrial real estate market is fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 9.40% of the total market in 2023.
Industrial Real Estate Global Market Opportunities and Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global industrial real estate market as it emerges from the COVID-19 shut down.
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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 history and forecasts market growth by geography. It places the market within the context of the wider industrial real estate market; and compares it with other markets.
The report covers the following chapters
- Introduction And Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by product by size and by application.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis And Strategic Analysis Framework- Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Global Market Size And Growth- Global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by product by size and by application in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size And Growth- Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies- Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers And Acquisitions- Information on recent mergers and acquisitions in the market covered in the report. This section gives key financial details of mergers and acquisitions, which have shaped the market in recent years.
- Recent Developments- Information on recent developments in the market covered in the report.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for industrial real estate providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 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
- Companies Mentioned: Coldwell Banker Real Estate LLC.; Cushman & Wakefield Inc.; JLL (Jones Lang LaSalle); Prologis Inc.; Ares Management Corporation
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; industrial real estate indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.