Europe Commercial Property Management Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.47 Trillion |
| Market Size (2029) | USD 1.75 Trillion |
| CAGR (2024 - 2029) | 3.53 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Commercial Property Management Market Analysis
The Europe Commercial Real Estate Market size is estimated at USD 1.47 trillion in 2024, and is expected to reach USD 1.75 trillion by 2029, growing at a CAGR of 3.53% during the forecast period (2024-2029).
- The commercial property management market in Europe is driven by the increasing demand for commercial spaces, especially offices.
- In 2024, leasing volumes are expected to increase by 10% but remain below historical levels. Employment in office-using industries is expected to show moderate growth in 2024. Occupiers will continue to advance their RTO and workplace strategies to the point where their space requirements are clearer.
- In 2024, quality differences are expected to become even more pronounced. Rightsizing and quality enhancement are the two major trends in portfolio strategy. As occupiers act to increase the user appeal of space and control costs, poorer quality space will experience higher voids and accelerated obsolescence. However, there will be upgrades/refurbishment opportunities.
- Vacancy rates are expected to be at their highest levels in more markets. While there may be an increase in the number of new developments in some of the larger markets, the inflow of speculative space into the market is expected to be contained. It is anticipated that most office markets will experience moderate increases in prime rents during 2024.
- The flex market is driven by corporate demands for quality and flexibility, and it is anticipated there will be an increase in the use of flex space in portfolios. The flex market in Europe is still developing, and it is anticipated to grow further in 2024 as occupiers become more comfortable with enhanced offers.
Europe Commercial Property Management Market Trends
The Retail Segment is Experiencing Lucrative Growth
Real wage growth in the United Kingdom and Europe has been negative since late 2021 as high inflation reduced purchasing power. It turned positive at the end of 2023, and it is expected to continue to do so as inflation softens in the second half of this year. This is likely to positively affect retail sales, which have already shown resilience in the face of the recent economic challenges.
While consumer confidence dropped sharply after the start of the Russia-Ukraine War, retail sales in Europe remained stable and, despite a slight decline in 2023, were still above December 2019 levels. In the United Kingdom, retail sales were lower in real terms than at the end of 2019; they were expected to improve in the first half of 2024. As purchasing power increases, retail fundamentals are expected to improve. However, the lagged impact of interest rate hikes is a downside risk.
The pandemic caused a dramatic increase in the proportion of retail sales that took place online compared to in-store sales. However, once physical retail re-opened, e-commerce growth leveled off. The growth rate of e-commerce penetration in key European markets broadly returned to pre-pandemic levels. There was no sustained acceleration of e-commerce growth due to the pandemic. Occupiers will continue to prioritize building an omnichannel customer experience that seamlessly integrates online and offline and enhances customer engagement.
As demand drivers improve in the retail sector, prime rents are projected to record a CAGR of approximately 3% in Europe in 2024, with a return to positive real growth in the second half as inflationary pressures ease. The delineation between prime and secondary assets is set to remain, with the strongest rental growth and the highest occupier demand coming from prime locations well-positioned to serve their catchment and offer the strongest proposition. Retailers will continue to invest in physical stores, with a greater focus on prime locations.
The United Kingdom Holds a Prominent Position in the Market
Interest rate cuts in H2 2024 are expected to bode well for property yields. After peaking in 2024, these yields are expected to stabilize and compress over the following years, signaling a turning point for values across all sectors.
The industrial and retail sectors will benefit from recovering consumer demand as real incomes grow. Prime offices will benefit from a relatively shallow peak in unemployment as job growth continues to grow, particularly in London.
Long rates reached their peak in 2023, but yield compression was expected to continue at least through the middle of 2024, suggesting a bottom for values. However, this would be sector-specific. The combination of high interest rates and declining values rendered debt buyers unviable and created a tight market; this is expected to improve as debt costs decline.
On the other hand, equity buyers are expected to take advantage of discounted values and, according to projections, buy at the lower end of the market price range, making use of positive net present values. As fewer transactions have taken place, it has become more challenging to monitor market pricing. As yields continue to decline, the buyer-seller disconnect will close, resulting in an increase in transaction activity throughout 2024.
Europe Commercial Property Management Industry Overview
The European commercial property management market is highly competitive and fragmented, with the presence of many players. Most players expand their businesses by investing strategically in partnerships, mergers, and acquisitions.
Office, industry, and logistics are the segments with the most investments in the market. These investments are driven by robust office space take-up and a rise in the demand for logistic warehouses despite the disruption caused by the pandemic. Some of the major players in the market include Servo, Covivo, Hines, Blackstone Inc., and Strabag Group.
Europe Commercial Property Management Market Leaders
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Servo
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Covivio
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Blackstone Inc.
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Hines
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Strabag Group
*Disclaimer: Major Players sorted in no particular order
Europe Commercial Property Management Market News
- December 2023: Blackstone, the world’s largest commercial real estate owner, announced plans to grow its footprint in Europe, with an emphasis on data centers, warehouses, and student accommodation. Blackstone’s London office locations are more flexible than those of WeWork due to its majority ownership of The Office Group, which partnered with Fora (part of its parent brand). The Office Group has more than 70 offices, with 61 in Central London.
- December 2023: MEININGER, the world’s largest hotel operator, announced plans to expand into Edinburgh after signing an agreement with property development firm S Harrison to turn a 1970s office block in the city’s Haymarket into a beautiful new hotel. S Harrison, based in York, purchased Osborne House in late 2018 and has since worked with Edinburgh’s Comprehensive Design Architects to develop the building’s transformational plans. The new hotel is expected to have a total of 157 bedrooms and include a ground-floor bar and lounge.
European Commercial Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Commercial Real Estate Buying Trends - Socioeconomic and Demographic Insights
4.3 Government Initiatives and Regulatory Aspects for Commercial Real Estate Sector
4.4 Supply Chain / Value Chain Analysis
4.5 Insights into Existing and Upcoming Projects
4.6 Insights into Rental Yields in the Commercial Real Estate Segment
4.7 Insights into Capital Market Penetration and REIT Presence in Commercial Real Estate
4.8 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)
4.9 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing immigration driving the market
5.1.2 Increase in supply of commercial properties driving the market
5.2 Market Restraints
5.2.1 Economic uncertainties hindering the growth of the market
5.3 Market Opportunities
5.3.1 Rapid development of new establishments driving the market
5.4 Industry Attractiveness - Porter's Five Force Analysis
5.4.1 Threat of New Entrants
5.4.2 Bargaining Power of Buyers/Consumers
5.4.3 Bargaining Power of Suppliers
5.4.4 Threat of Substitute Products and Services
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Offices
6.1.2 Retail
6.1.3 Industrial
6.1.4 Logistics
6.1.5 Multi-family
6.1.6 Hospitality
6.2 By Country
6.2.1 United Kingdom
6.2.2 Germany
6.2.3 France
6.2.4 Russia
6.2.5 Rest of Europe
7. COMPETITIVE LANDSCAPE
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 Servo
7.2.2 Covivio
7.2.3 Blackstone Inc.
7.2.4 Hines
7.2.5 Strabag Group
7.2.6 Tishman Speyer
7.2.7 HB Reavis Group
7.2.8 AG Real Estate
7.2.9 Futureal Management Szolgaltato Kft.
7.2.10 Skanska*
- *List Not Exhaustive
7.3 Other Companies
8. FUTURE OF THE MARKET
9. APPENDIX
Europe Commercial Property Management Industry Segmentation
Commercial real estate (CRE) refers to property for business-related purposes or to provide a workspace rather than a living space. The market report includes an analysis of market dynamics, technological trends, insights, and government initiatives.
The commercial property management market in Europe is segmented by type (office, retail, industrial, logistics, multi-family, and hospitality) and country (the United Kingdom, Germany, France, Russia, and Rest of Europe). The report offers market sizes and forecasts in value (USD) for all the above segments.
| By Type | |
| Offices | |
| Retail | |
| Industrial | |
| Logistics | |
| Multi-family | |
| Hospitality |
| By Country | |
| United Kingdom | |
| Germany | |
| France | |
| Russia | |
| Rest of Europe |
European Commercial Real Estate Market Research FAQs
How big is the Europe Commercial Real Estate Market?
The Europe Commercial Real Estate Market size is expected to reach USD 1.47 trillion in 2024 and grow at a CAGR of 3.53% to reach USD 1.75 trillion by 2029.
What is the current Europe Commercial Real Estate Market size?
In 2024, the Europe Commercial Real Estate Market size is expected to reach USD 1.47 trillion.
Who are the key players in Europe Commercial Real Estate Market?
Servo, Covivio, Blackstone Inc., Hines and Strabag Group are the major companies operating in the Europe Commercial Real Estate Market.
What years does this Europe Commercial Real Estate Market cover, and what was the market size in 2023?
In 2023, the Europe Commercial Real Estate Market size was estimated at USD 1.42 trillion. The report covers the Europe Commercial Real Estate Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Europe Commercial Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key trends in the Europe Commercial Real Estate Market?
The key trends in the Europe Commercial Real Estate Market are a) Preference for modern, sustainable, and flexible properties b) Rise of co-working spaces and mixed-use developments c) More logistics and warehousing space needed for e-commerce d) Focus on integrating technology (proptech) and smart buildings
European Commercial Real Estate Industry Report
The European Commercial Real Estate Market is experiencing robust growth, driven by increasing urbanization, economic stability, and evolving consumer preferences towards sustainable and flexible properties. The market is segmented by type into offices, retail, industrial, logistics, multi-family, and hospitality, and by country into the United Kingdom, Germany, France, Russia, and the rest of Europe. The report offers market sizes and forecasts in value for all these segments.
Major cities across Europe continue to attract significant commercial investments, with a notable demand for office spaces due to the rise of startups and multinational expansions, and industrial spaces driven by e-commerce growth. The market is also seeing a revival in retail, fueled by a trend towards experiential retail that combines shopping with entertainment and dining. Additionally, the integration of technology and a focus on sustainability are creating new opportunities for property developers and investors.
Despite challenges such as high acquisition costs and regulatory complexities, the market offers potential for revenue generation and portfolio diversification, promising a dynamic future landscape for stakeholders. The industry outlook is optimistic, supported by detailed industry statistics and market data. The market forecast indicates continued growth, with market predictions pointing towards increased market value and market segmentation.
Industry leaders are leveraging industry research and market analysis to stay ahead of trends. The market overview highlights the importance of industry information and industry trends in shaping future strategies. Market growth is driven by a combination of market leaders and innovative approaches within the industry.
For detailed statistics on market share, size, and revenue growth rate, refer to industry reports which include a market forecast outlook and historical overview. This industry analysis provides a comprehensive market review, essential for understanding the market outlook and industry size.
The report pdf is available for those seeking an in-depth market review, with sections dedicated to industry sales and market segmentation. Research companies can benefit from this report example, which serves as a valuable resource for industry analysis and market predictions.
