Commercial real estate is increasingly ending up in the hands of publicly traded firms, which now boast more than $1.6 trillion in real estate holdings.
S&P Global Market Intelligence calculated the $1.6 trillion figure, the highest dollar volume of real estate ownership for that sector in at least a decade, and a 38 percent increase from ten years ago, according to the Wall Street Journal.
A few recent transactions highlight how publicly-traded companies — particularly tech firms — are leading the commercial real estate push. Last week, Google shattered a pandemic record, plunking down $2.1 billion to purchase its St. John’s Terminal office in Hudson Square.
Amazon is also making big purchases across the country. Right before the pandemic shut down the country, Amazon paid $1.1 billion to buy the Lord & Taylor Building from WeWork, working out to about $2,000 per square foot for the 660,000-square-foot building.
The e-commerce giant is also augmenting its rapidly expanding stock of industrial-sector leases by building its own facilities on land it has purchased.
Neither company tops the list of real estate value for publicly-traded companies, though, and it’s not even close. As of the most recent fiscal year, Walmart comes out on top with $116.9 billion worth of real estate, more than doubling Amazon’s second-place total of $57.3 billion. Alphabet — Google’s parent company — ranks third at $49.7 billion, followed by Microsoft and AT&T.
Companies have been taking advantage of low interest rates and the falling cost of office properties in major cities brought on by the pandemic. These firms are also looking to invest some of their massive piles of cash in hand.
Publicly-traded companies are holding $2.7 trillion in cash, cash equivalents and short-term investments, S&P Global reports — an increase of more than 90 percent from the fourth quarter in 2011. Alphabet leads its peers in the category, with holdings of $135.9 billion at the end of last quarter.
[WSJ] — Holden Walter-Warner
FAQs
As of the most recent fiscal year, Walmart comes out on top with $116.9 billion worth of real estate, more than doubling Amazon's second-place total of $57.3 billion. Alphabet — Google's parent company — ranks third at $49.7 billion, followed by Microsoft and AT&T.
How much of US real estate is owned by REITs? ›
Today, U.S. REITs own more than $4 trillion of gross real estate with public REITs owning $2.5 trillion in assets. U.S. listed REITs have an equity market capitalization of more than $1.2 trillion. In 2022, REITs paid an estimated $109.9 billion in dividends to shareholders.
What corporation owns the most real estate? ›
There was change in the top 10 this year, with only the top two biggest owners of real estate – China's Evergrande Real Estate ($273.8bn) and Canada's Brookfield Asset Management ($256.3bn) – retaining their positions.
What is a publicly traded real estate company? ›
Public listed REITS are traded on public stock exchanges and, therefore, the most liquid form of real estate investing. Investors of publicly listed REITs can move in and out of their investment at any time by buying and selling REIT shares.
Who owns most of the real estate in US? ›
How much real estate does BlackRock own? ›
While it is true that Blackrock does not own houses or own companies that own houses, they do invest in companies that own houses. Blackrock owns 6.7% of American Homes for Rent, which owns 59,000 homes in the United States.
Who is the biggest private landowner in the US? ›
The nation's largest private landowners are the Emmerson family in California who own over 2.4 million acres. The bulk of that land is dedicated to timber in Northern California. But the most headline-worthy transaction of 2022 was the Four Sixes Ranch in Texas.
What does the Catholic Church own? ›
The Catholic Church's property across the globe spans nearly 277,000 square miles, which is just about the size of Texas, said Gerald Posner, author of “God's Bankers: A History of Money and Power at the Vatican.” “That includes embassies, churches, cathedrals, monastery schools and convents,” Posner said.
What family owns the most real estate? ›
Who Is the Largest Landowner in the U.S.? The largest landowners in the United States are the Emmerson family, with 2,330,000 acres of land. Red Emmerson, the patriarch of the family, founded Sierra Pacific Industries in Anderson, CA.
What is the richest real estate company? ›
Founded in 1983 in Austin, Keller Williams Realty was initially just Gary Keller and Joe Williams. However, by 1985, they had 72 agents working for them. Since then, Keller Williams Realty has grown into by far the world's largest franchised real estate company, doing nearly $400 billion in revenue per year.
Best-performing REIT mutual funds
| Symbol | Fund name | 5-year return |
|---|
| CRERX | Columbia Real Estate Equity Adv | 6.13% |
| IVRSX | VY® CBRE Real Estate S | 5.79% |
| JIREX | JHanco*ck Real Estate Securities 1 | 4.85% |
| GMJPX | Goldman Sachs Real Estate Securities P | 4.64% |
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Equity REITs
Properties can generate rental income, which, after collecting fees for property management, provides income to its investors. These REITs generate income from renting real estate to tenants. After paying expenses for operation, equity REITs pay out dividends to their shareholders on a yearly basis.
Who is the largest real estate holding company? ›
| Rank | Profile | Total Assets |
|---|
| 1. | China Evergrande Group | $367,867,914,300 |
| 2. | Sunac China | $178,587,888,469 |
| 3. | Tishman Speyer | $115,000,000,000 |
| 4. | Hines Group | $90,300,000,000 |
85 more rowsWith $636.4 billion in sales volume, Anywhere maintained a big lead over Keller Williams ($439.6 billion) and RE/MAX ($291.6 billion). The only company in the top 10 to grow sales volume was eXp, which came in at No. 6 and reported gains of 20.2%. Reporting the most impressive growth was Peerage Realty Partners.
What organization has the most real estate in the world? ›
1. Roman Catholic Church: 70 million hectares. The largest landowner in the world is not a major oil magnate or a real estate investor. No, it's the Roman Catholic Church.
Who owns the most real estate on the planet? ›
The largest landowner in the world currently is King Charles III of England. How much land does the Royal Family own? He and the British Royal Family own more than 6,600,000,000 acres of land around the world. They technically own many territories around the globe, amounting to 1/6 of the surface of the planet.
