The Largest Commercial Real Estate Owners
Commercial real estate (CRE) is a multi-billion dollar industry. On the whole, there are a handful of companies across the globe own and manage hundreds of millions of square feet of commercial real estate. These assets include office buildings, hotels, retailers, warehouses, medical offices, strip malls, restaurants, gas stations, and other non-residential properties. In this article, we introduce some of the world’s largest commercial real estate owners. Also, we present a table detailing each company’s holdings.
- The Largest Commercial Real Estate Companies
- Total Holdings of Each Company
- Looking to Invest in Commercial Real Estate?
- Contact CXRE Today
The Largest Commercial Real Estate Companies
One of the major keys to a successful commercial real estate investment is an attentive real estate operation. If an ownership group isn’t attentive to tenants’ needs, the property could suffer.
At the same time, size can be detrimental to quality management. For example, as a group’s portfolio size increases, a building’s tenant gets a smaller percentage of the owner’s attention.
On top of that, the largest commercial real estate companies also need solid financial backing. What’s more, a successful commercial real estate group needs ‘ear-to-the-ground’ people, brokers who know the lay of the land. By having people onboard who are tuned in to the commercial real estate markets, a firm can more easily facilitate deals.
Also, these top commercial real estate companies know how to build on success. For example, one great investment doesn’t make a successful firm. However, putting together a string of good deals and smart investments does lead to success. Also, these companies have the ability to learn from failures while repeating past accomplishments.
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The Blackstone Group
Founded almost 40 years ago, The Blackstone Group is now the United States’ largest office property owner. In fact, Blackstone has a portfolio with over 150M SF of office space. One of Blackstone’s more iconic properties is Chicago’s iconic Willis Tower (formerly the former Sears Tower). Furthermore, the group owns more than 300M SF feet of retail, residential, and industrial space.
During the past ten to twelve years, Blackstone has grown tremendously. Since going public in 2007, it has quadrupled in size. On top of that, Blackstone’s real estate division has exploded from a $17.7B venture to a $100B portfolio. According to BizNow, since 2009, it has spent more than $50 billion on commercial real estate. In addition, Blackstone closed a real estate fund worth about $16B in 2015. As a result, Blackstone now has the crown of ‘Largest Real Estate Owner in the World.’ Business Insider has even called the group’s Chairman and CEO Steve Schwarzman, ‘America’s landlord.’
Prologis owns and manages over 660M SF of CRE along with 7,400 acres of land in 20 countries. Since its founding in 1983, the company’s focus has been industrial properties near transportation hubs. Due to this, Prologis has invested heavily near interstates, major highways, airports, and seaports. Currently, Prologis owns and manages around 3,000 logistics and distribution facilities around the world.
By specializing in the supply-chain and logistics, the company provides clients with connected solutions. Apart from owning properties, Prologis also pursues environmental sustainability, leading it to produce yearly Sustainability Reports. Additionally, the company has sought to offset its environmental footprint by installing rooftop solar panels on many of its properties.
Simon Property Group
Fortune magazine has named Simon ‘the most admired company in real estate’ eight times. Furthermore, it is one of the world’s largest commercial real estate companies. In contrast to Prologis, the company focuses on completely different aspects of CRE. Formed in 1993 from the shopping center interests of Melvin Simon & Associates, the Simon Property Group now owns 229 shopping malls and shopping centers around the world totaling 190M SF. Many of these are high-end shopping destinations such as Woodbury Commons in New York and The Forum at Caesars Palace in Las Vegas.
Duke Realty Corp
Even though this company is focused only on the U.S. market, it is still one of the biggest commercial real estate owners in the world. Overall, Duke specializes in healthcare and industrial properties. Specifically, it has almost 155 million rentable SF feet of industrial and logistics assets in 20 major markets. 2009, the company has scaled back its office space holdings and to focus on the modern supply chain by strengthening its ties with e-commerce businesses.
In 2018, Duke Realty announced a $400 million green bond offering to show its commitment to sustainability. Jim Connor, Duke Realty’s Chairman and CEO, said, “As a developer, we believe that we have a responsibility to minimize the impact our properties have on the environment, our customers and the communities in which we operate and live.” This is the first bond of its kind in the US.
The company has a history of investing in sustainability. Duke Realty will use the bond’s net proceeds to finance or refinance projects like green buildings, renewable energy projects, energy efficiency projects, sustainable water systems, and sustainable wastewater management systems. It also plans to invest over $1 billion in new LEED certifications in the next few years.
General Growth Properties
Founded by Martin and Matthew Bucksbaum in 1954, this shopping mall and retail operator holds over 130 properties comprising almost 130M SF of CRE. General Growth Properties operates 100 of the top 500 malls in the US including Ala Moana Center in Honolulu, Hawaii, the world’s largest open-air shopping mall. Apart from merely owning property, the company takes sustainability issues seriously, focusing on responsible energy consumption and reducing water in its malls. As a result, it has been awarded the Green Star by the Global Real Estate Sustainability Benchmark.
Total Holdings of Each Company
|Company Name||Square Footage Owned and Managed|
|The Blackstone Group|
|Simon Property Group|
|Duke Realty Corp|
|General Growth Properties|
Information on largest commercial real estate companies courtesy of VTS (http://blog.vts.com/top-5-commercial-real-estate-owners) and Wikipedia.
Looking to Invest in Commercial Real Estate?
Although your portfolio might not be as large as these commercial real estate giants, you still want to maximize your investments. Whether you’ve got your sights set on office properties, industrial properties, retail, restaurant spaces, logistics facilities, or medical properties, we can assist you. What’s more, we also offer a full range of offer leasing and management services.
In order to lease properties that you own, then you need a proactive, knowledgeable team.
When you choose CXRE to lease your property, we don’t and wait for tenants. Instead, we seek them out. In fact, we talk to over 15,000 prospective tenants every year on behalf of our clients. And, every month, we have hundreds of potential tenants who visit our website to learn about properties like yours. And in addition to listing on our own site, we list your property on major listing sites like Loopnet and CoStar. Read more about CXRE’s Leasing Services.
CXRE offers property management services for many assets types—office buildings, medical offices, warehouse/industrial commercial real estate, retail centers, and even restaurants. Some of our services include Landlord Representation Leasing (Building Leasing as Owner’s Rep), Tenant Management and Relations, Monthly Financial Reporting, Investment Brokerage for Sales/Purchase of Commercial Real Estate (both buildings & land). If you are a property owner who needs to lease a space you own, we can be your advocate. Also, when you partner with CXRE, you have experienced brokers on your team. Read more about our Property Management Services.
Contact CXRE Today
Contact our team of experienced professionals today to learn more about Texas commercial real estate. We work in Houston, Dallas-Ft. Worth, and San Antonio. Our team can advise you on the best places to invest your money in Texas. Let us help you grow and maximize your commercial real estate portfolio!