What is global real estate?
Real estate is one of the world’s largest industries and investment sectors. Global real estate encompasses a wide spectrum of properties that serve a range of purposes in every country in the world.
What are the different sectors of global real estate?
For investment and management purposes, global real estate is divided into several sectors. Residential real estate encompasses homes and apartment buildings, while commercial real estate consists of office buildings. A significant part of the global real estate sector is also comprised of hotel and retail properties. Industrial real estate is a broad category that includes factories and mines. Logistics real estate refers to distribution centers, warehouses and other logistics facilities.
Real estate is often an intensely local industry. How is real estate global?
In the 21st century economy, companies rely on extensive and complicated supply chains and trade routes. In addition, companies often operate in many countries and on several continents, seeking growth by expanding into new geographic areas. Instead of considering real estate on a local or regional basis, companies often have to employ a global real estate strategy.
Who participates in the global real estate market?
Large companies with operations in many different countries are key participants in the global real estate market because they often need to acquire or rent office and logistics real estate in more than one country. Institutions, such as real estate investment trusts (REITs), corporations and investment funds, seek to build scale and diversify by developing or acquiring real estate in important global markets. Owners and landlords with large portfolios of global real estate are able to offer space in a range of markets, enabling growth and entry into new markets for their tenants.
