Real Estate Investment Trusts in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS 52593Revenue
$252.6bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
202k
Businesses
2,690
Wages
$XX.Xbn
Real Estate Investment Trusts in the US industry analysis
Real estate investment trusts (REITs) are companies that invest in both commercial and residential income-generating real estate and distribute at least 90.0% of their taxable income to shareholders. In the past five years, the industry expanded significantly as a result of rising property values and increasing investment by institutional investors in the recent years. In light of a burgeoning property market and historically low interest rates, investors ranging between hedge funds and university endowments have invested in REITs due to their highly liquid, income-generating characteristics. More recently, the fears of inflation and rising interest rates are negatively affecting the underlying assets invested by REITs. In the past five years, industry revenue increased at a CAGR of 1.3% to $249.4 billion, including a 1.4% increase in 2023 alone, when profit margins will drop to 22.3%.
Trends and Insights
- The industry has been growing in recent years, driven by factors such as low interest rates, and the increasing demand for data centers. Interest rates have been historically low for most of the last 15 years.
- The rising cost of mortgages and the increased interest rates will likely lower demand for Equity REITs in the next couple of years. Higher rates make mortgages more expensive.
- As the population migrates to the Sunbelt region, the need for new office buildings, apartments and retail centers increases. Real estate investment trusts (REITs) benefit from this shift because of their expertise in land development, property management and access to capital.
- As liquidity in the markets dries up, due to rising interest rates, only the strongest REIT’s will survive the new environment. This increasingly competitive market will push consolidation.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.0 % over the past five years, to reach an estimated $252.6bn in 2024.
Trends and Insights
What are Real Estate Investment Trusts (REITs)?
- REITs are publicly traded companies that own and operate income-generating real estate properties. They give investors an opportunity to invest in a diversified portfolio of properties, from commercial, residential, to industrial and data centers.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The fears of hyperinflation and recession cast a murky future for REITs
- The Federal Reserve's efforts to curb inflation by hiking interest rates could backfire and plunge the economy into a recession. If they stop raising rates too soon and inflation fears take root, the economy might spiral into hyperinflation.
Biggest companies in the Real Estate Investment Trusts in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Weyerhaeuser Company | 5,335.8 | 2,070.2 | 38.8 | |
Simon Property Group, inc. | 4,104.4 | 1,420.1 | 34.6 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Residential equity REITs , Retail equity REITs and Other commercial equity REITs . Residential equity REITs is the largest segment of the Real Estate Investment Trusts in the US.
Trends and Insights
Equity REITs might lose popularity as the cost of mortgages increase
- Equity REITs use pooled capital from many investors to purchase and manage income property. The equity REIT structures continue to gain popularity among certain investors and real estate firms despite increased mortgage rates.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Open-End Investment Funds in the US
Complementors
- Apartment Rental in the US
- Commercial Leasing in the US
- Storage & Warehouse Leasing in the US
- Land Leasing in the US
International industries
- Real Estate Investment Trusts in Canada
- Financial Asset Investing in Australia
- Financial Asset Investing in New Zealand
- Real Estate Investment Trust Activities in the UK
Table of Contents
About this industry
Industry definition
This industry comprises legal entities that are categorized as real estate investment trusts (REITs). REITs, such as mutual funds, use the pooled capital of many investors to directly invest in income-yielding properties. To qualify as a REIT, a company or trust must distribute at least 90.0% of their taxable income to shareholders annually. Income is largely generated from rent, interest and capital gains.
What's included in this industry?
Property purchasing including commercial, industrial, retail and residential real estateProperty development including commercial, industrial, retail and residential real estateProperty management including commercial, industrial, retail and residential real estateMortgage financingCompanies
Weyerhaeuser CompanySimon Property Group, inc.Purchase this report to view all 2 major companies in this industry.
Related Terms
EQUITY REITMORTGAGE REITHYBRID REITLEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGNMEZZANINE LOANSFUNDS FROM OPERATIONS (FFO)LOAN-TO-VALUE RATIO (LTV)MORTGAGE-BACKED SECURITIES (MBSS)REAL ESTATE INVESTMENT TRUST (REIT)DEBT-TO-EBITDAIndustry Code
NAICS 525990 - Real Estate Investment Trusts in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The industry has been growing in recent years, driven by factors such as low interest rates, and the increasing demand for data centers. Interest rates have been historically...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The rising cost of mortgages and the increased interest rates will likely lower demand for Equity REITs in the next couple of years. Higher rates make mortgages more expensiv...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
As the population migrates to the Sunbelt region, the need for new office buildings, apartments and retail centers increases. Real estate investment trusts (REITs) benefit fr...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
As liquidity in the markets dries up, due to rising interest rates, only the strongest REIT’s will survive the new environment. This increasingly competitive market will push...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major companies adapted to higher interest rates and less liquidity. After nearly 15 years of quantities easing, the Federal Reserve is reducing its balance sheet to help con...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Weyerhaeuser Company's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Simon Property Group, inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Weyerhaeuser Company, and factors influencing its performance in the industry
- Description and key data for Simon Property Group, inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Revenue volatility in the industry is largely affected by general economic conditions. Industry revenue is mainly generated by rental income, interest income and capital gain...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
REITs have been consistently profitable over the last five years, with profit remaining relatively stable. The expansion of real estate prices and low liquidity for most of t...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Real Estate Investment Trusts in the US industry in United States in 2024?
The market size of the Real Estate Investment Trusts in the US industry in United States is $252.6bn in 2024.
How many businesses are there in the Real Estate Investment Trusts in the US industry in 2024?
There are 2,690 businesses in the Real Estate Investment Trusts in the US industry in United States, which has grown at a CAGR of 1.8 % between 2019 and 2024.
Has the Real Estate Investment Trusts in the US industry in United States grown or declined over the past 5 years?
The market size of the Real Estate Investment Trusts in the US industry in United States has been growing at a CAGR of 0.0 % between 2019 and 2024.
What is the forecast growth of the Real Estate Investment Trusts in the US industry in United States over the next 5 years?
Over the next five years, the Real Estate Investment Trusts in the US industry in United States is expected to grow.
What are the biggest companies in the Real Estate Investment Trusts in the US market in United States?
The biggest companies operating in the Real Estate Investment Trusts market in United States are Weyerhaeuser Company and Simon Property Group, inc.
What does the Real Estate Investment Trusts in the US in United States include?
Property purchasing including commercial, industrial, retail and residential real estate and Property development including commercial, industrial, retail and residential real estate are part of the Real Estate Investment Trusts in the US industry.
Which companies have the highest market share in the Real Estate Investment Trusts in the US in United States?
The company holding the most market share in United States is Weyerhaeuser Company.
How competitive is the Real Estate Investment Trusts in the US industry in United States?
The level of competition is moderate and increasing in the Real Estate Investment Trusts in the US industry in United States.
