Commercial real estate market set to reach $703 billion by 2035, with hospitality and data centers leading growth

July 18, 2026 - 20:20

A new forecast projects the global commercial real estate market will reach $703 billion by the year 2035, growing at a compound annual rate of 4.63 percent. The expansion is expected to be led by two distinct sectors: hospitality and data centers.

The hospitality industry is rebounding strongly after a period of disruption, with increased travel demand driving investment in hotels and resorts. At the same time, the explosive growth of cloud computing, artificial intelligence, and streaming services is fueling an insatiable need for data centers. These facilities are now a cornerstone of CRE investment, as companies rush to build capacity for digital infrastructure.

Industrial leasing also remains a key driver, supported by the ongoing evolution of supply chains and e-commerce. Warehouses and logistics hubs continue to see high demand, particularly in major distribution corridors. the adoption of property technology, or proptech, is reshaping how buildings are managed, leased, and financed. Investors are increasingly using data analytics and automation to improve efficiency and returns.

While office space faces headwinds from hybrid work trends, the overall market outlook remains positive due to the diversification into high-growth asset classes. The forecast suggests that commercial real estate will remain a resilient and evolving investment landscape over the next decade.