The Biggest Commercial Real Estate Owners - CXRE Commercial

The Largest Commercial Real Estate Owners

Without a doubt, commercial real estate (CRE) is a multi-billion dollar industry. This sector includes office buildings, hotels, strip malls, restaurants, retailers, gas stations, and other non-residential properties. Across the globe, there are a handful of companies that control these assets. The companies own and manage hundreds of millions of square feet of commercial real estate. In this article, we look at some of the biggest commercial real estate owners in the world. We also present a table which details each company’s holdings.

The Largest Commercial Real Estate Companies

One of the major keys for 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 on board 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

The Blackstone Group was founded almost 40 years ago. Now, four decades later, it is the United States’ largest office property owner. Blackstone’s portfolio has over 150M SF of office space including Chicago’s iconic Willis Tower (formerly the former Sears Tower). In addition, the group owns over 300M SF feet of retail, industrial, and residential space.

Over the past decade, Blackstone has experienced tremendous growth. Since Blackstone going public in 2007, the group has quadrupled in size. Furthermore, its real estate division has grown from a $17.7B venture to a $100B portfolio. According to BizNow, the firm has spent over $50 billion on commercial real estate since 2009. What’s more, in 2015 alone, the group closed a real estate fund worth about $16B. As a result, Blackstone took the crown of ‘Largest Real Estate Owner in the World.’  Business Insider even goes so far as to call Chairman and CEO Steve Schwarzman, ‘America’s landlord.’

Prologis

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 140M SF of commercial real estate, both completed and under development. Since 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.

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 NameSquare Footage Owned and Managed
The Blackstone Group
  • 153M SF of office space globally
  • 3.8M SF Willis Tower in Chicago
  • 5.3M SF in several Manhattan office buildings
  • 179M SF of retail space
  • 153M SF of industrial property
  • 96,000 multifamily residential units
Prologis
  • 607M SF of industrial properties, logistics and distribution facilities globally
  • An additional 62M SF managed or under development
Simon Property Group
  • More than 190M SF of retail space
  • Over 200 properties domestically
  • Almost 30 properties internationally
Duke Realty Corp
  • 138M SF of assets owned or under development
General Growth Properties
  • 131 retail properties totaling 128M SF

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? Contact CXRE!

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.

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!

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