In this piece, we will take a look at the 20 biggest real estate companies in USA. For more real estate companies, head on over to 5 Biggest Real Estate Companies in USA.
Two children, a car, and a white picket fence – so goes the American dream. Looking at this, you’ll realize that the automotive and real estate industries are at the center of American culture. Most people dream to own their house one day and often end up taking out multi-decade long mortgages to afford their own place of living. Apart from houses, several other buildings and properties make up the real estate sector. These range from public places such as parks, to apartment complexes, office buildings, and giant skyscrapers.
Naturally, this also means that the real estate industry is among the most closely watched sectors by both governments and the wealthy. The rich are crazy about real estate since they invest copious amounts of wealth in it. After all, having a villa in Beverly Hills has a much different bling to it than a house in a village. Speaking numbers, a report from McKinsey shows that two thirds of global net worth were invested in real estate as of 2020. Within these two thirds, residential and private real estate accounted for almost half, or 46%, of global net worth, with government and public buildings making up another 23%. Growth rates in net worth with respect to the overall gross domestic product (GDP) show that this plowing of funds into a notoriously unproductive asset has led to significant net worth growth as well. McKinsey’s data shows that between 2000 and 2020, net worth compared to GDP was a stunning 104% higher than in the three decades between 1970 and 1999. On the most extreme end, France’s richest benefited from the real estate boom, as it grew by an eye popping 371% higher than the GDP! Within the net worth growth between 2000 and 2020, two thirds were due to higher asset prices, with saving and investment both accounting for a rather tame 28%.
As this should make it clear, real estate is quite lucrative indeed. But just how lucrative is estimated in a research report from Grand View Research. In this report, the firm estimates that the global real estate industry was worth $3.69 trillion in 2021 and despite this huge size, the segment is expected to post a compounded annual growth rate (CAGR) of 5.2% between 2022 and 2030 to sit at $5.85 trillion by the end of the forecast period. Within the market, the commercial real estate market was the largest constituent segment as it accounted for 35% of the entire market. Apart from residential, the commercial real estate market is another large component of the industry and it will match the broader sector’s growth rate by growing at a 5.1% CAGR during the forecast period. Additionally, Grand View Research also highlights that sales by property type, such as villas and second homes, will outpace the broader market in terms of growth by growing at 6.1%. It adds that the Middle East and Africa will also outpace market growth, but Asia Pacific is the largest segment in terms of geography with more than half the market share.
In America, the real estate sector is facing some stress these days, This is due to the Federal Reserve’s aggressive interest rate hikes that aim to make borrowing costs for firms and individuals higher to kill GDP growth and fight inflation. The U.S. real estate sector is worth $20 trillion (this is the total value of the properties and not the revenues) and prices dropped by 15% in March 2023 from their peak values. Rising interest rates are playing a role in this, as commercial real estate purchases are rarely made out of pocket and instead, they rely on bank loans and funding. While a 15% drop in itself sounds high, experts worry that prices could drop as much as 30% in case of an economic downturn or a recession.
Prologis, Inc. (NYSE:PLD)’s earnings call for its fourth quarter of 2022 provides valuable insight. During the event, management outlined:
With regard to our markets and leasing activity, the bottomline is that conditions remain healthy and there is little we see across our results or proprietary metrics that point to a meaningful slowdown. We see a normalization of demand and when combined with low vacancy, it continues to translate to a meaningful increase in rents. Across our markets, rent growth was nearly 5% during the quarter, driving the full year to 28%. Proposal activity for available space was consistent with our recent history, and given persistent low vacancy, there is simply a very small number of units to even propose deals on. As evidenced, over 99% of our portfolio is either currently leased or in negotiation. Utilization remains high at 86%, near its all time record and deal gestation ticked up over the quarter, indicative of more careful consideration and time being taken in leasing decisions.
While we are watching e-commerce carefully, its share of overall retail sales have increased to 22%, which is 600 basis points above its pre-pandemic level. Putting the nuance of mix, timing and other factors aside, as measured by retention, occupancy or rent change, it is clear that customers need to commit to space to market conditions, which offer them very little choice. In terms of supply, the development pipeline across our market stands at 565 million square feet and our expectation for the year is that the pipeline will decline. Deliveries will put modest upward pressure on vacancies from 3.3% today towards 4% later in the year. However, new development starts are slowing in response to the market environment, which will reduce vacancies in late 2023 or 2024.
With these details in mind, let’s take a look at the biggest real estate companies in America, out of which the top ones are Equinix, Inc. (NASDAQ:EQIX), American Tower Corporation (NYSE:AMT), and Prologis, Inc. (NYSE:PLD).
Our Methodology
We made a list of all firms that provide real estate transaction, valuation, and related services that have operations in America and are traded on U.S. stock exchanges for our list of the biggest real estate companies. Out of these, the top 20 in terms of market cap are selected.
20 Biggest Real Estate Companies in USA
20. Rocket Companies, Inc. (NYSE:RKT)
Latest Market Capitalization: $18.66 billion
Rocket Companies, Inc. (NYSE:RKT) is an American real estate financing firm. It provides property valuations and mortgages along with other services. The firm is based in Detroit, Michigan.
By the end of Q4 2022, 20 of the 943 hedge funds part of Insider Monkey’s database had held a stake in Rocket Companies, Inc. (NYSE:RKT). The firm’s largest investor is Jim Simons’ Renaissance Technologies which owns 2 million shares that are worth $15 million.
Rocket Companies, Inc. (NYSE:RKT) joins Equinix, Inc. (NASDAQ:EQIX), American Tower Corporation (NYSE:AMT), and Prologis, Inc. (NYSE:PLD) as one of the biggest real estate companies in America.
19. Invitation Homes Inc. (NYSE:INVH)
Latest Market Capitalization: $19.80 billion
Invitation Homes Inc. (NYSE:INVH) is a real estate investment trust that leases out single family homes. It is based in Dallas, Texas.
Insider Monkey’s December 2022 survey of 943 hedge funds revealed that 17 had bought the REIT’s shares. Invitation Homes Inc. (NYSE:INVH)’s largest investor is Greg Poole’s Echo Street Capital Management with a $110 million stake.
18. Alexandria Real Estate Equities, Inc. (NYSE:ARE)
Latest Market Capitalization: $20.83 billion
Alexandria Real Estate Equities, Inc. (NYSE:ARE) is a REIT with millions of square feet of properties in its portfolio. It is headquartered in Pasadena, California.
29 of the 943 hedge funds holdings studied by Insider Monkey for last year’s fourth quarter had invested in Alexandria Real Estate Equities, Inc. (NYSE:ARE). Out of these, Eduardo Abush’s Waterfront Capital Partners is the REIT’s largest investor since it owns $40.9 million worth of shares.
17. CBRE Group, Inc. (NYSE:CBRE)
Latest Market Capitalization: $21.95 billion
CBRE Group, Inc. (NYSE:CBRE) is a real estate services firm that provides consulting, litigation support, and other services. It operates out of Dallas Texas.
After scouring through 943 hedge fund portfolios for 2022’s final quarter, Insider Monkey found out that 38 had bought the firm’s shares. CBRE Group, Inc. (NYSE:CBRE)’s largest hedge fund shareholder is Natixis Global Asset Management’s Harris Associates with a $1 billion stake.
16. UDR, Inc. (NYSE:UDR)
Latest Market Capitalization: $22.21 billion
UDR, Inc. (NYSE:UDR) is a REIT headquartered in Highlands Branch, Colorado. It primarily develops apartment complexes.
Insider Monkey’s Q4 2022 survey of 943 hedge funds revealed that 28 had held a stake in UDR, Inc. (NYSE:UDR). Out of these, Jeffrey Furber’s AEW Capital Management owns 2.3 million shares worth $89 million, making it the largest investor.
15. Extra Space Storage Inc. (NYSE:EXR)
Latest Market Capitalization: $22.87 billion
Extra Space Storage Inc. (NYSE:EXR) is a Utah based REIT that owns, develops, and operates storage units.
27 of the 943 hedge funds profiled by Insider Monkey had bought the REIT’s shares in Q4 2022. Out of these, Extra Space Storage Inc. (NYSE:EXR)’s largest shareholder is Jeffrey Furber’s AEW Capital Management which owns a $72 million stake.
14. Equity Residential (NYSE:EQR)
Latest Market Capitalization: $23.62 billion
Equity Residential (NYSE:EQR) is an REIT headquartered in Chicago, Illinois. It focuses on residential properties in lucrative cities such as New York and California.
As of December 2022, 30 of the 943 hedge funds part of Insider Monkey’s database had invested in Equity Residential (NYSE:EQR). Jean-Marie Eveillard’s First Eagle Investment Management is its largest hedge fund shareholder through owning 7.5 million shares worth $446 million.
13. AvalonBay Communities, Inc. (NYSE:AVB)
Latest Market Capitalization: $23.91 billion
AvalonBay Communities, Inc. (NYSE:AVB) is a real estate investment trust that owns and operates apartments in cities such as New York and Seattle.
Insider Monkey dug through 943 hedge fund portfolios for last year’s fourth quarter and found out that 30 had bought the REIT’s shares. AvalonBay Communities, Inc. (NYSE:AVB)’s largest investor is Greg Poole’s Echo Street Capital Management with a $152 million stake.
12. Digital Realty Trust, Inc. (NYSE:DLR)
Latest Market Capitalization: $27.48 billion
Digital Realty Trust, Inc. (NYSE:DLR) is a specialty REIT firm that provides data center properties to businesses.
By the end of 2022, 30 of the 943 hedge funds profiled by Insider Monkey had held a stake in Digital Realty Trust, Inc. (NYSE:DLR). Out of these, Dmitry Balyasny’s Balyasny Asset Management is the largest shareholder as it owns 743,672 shares worth $74 million.
11. CoStar Group, Inc. (NYSE:CSGP)
Latest Market Capitalization: $28.32 billion
CoStar Group, Inc. (NYSE:CSGP) is a diversified real estate firm that manages properties and a software platform for transactions.
Insider Monkey looked through 943 hedge fund holdings for Q4 2022 and found that 46 had invested in the firm. CoStar Group, Inc. (NYSE:CSGP)’s largest investor is Charles Akre’s Akre Capital Management with a $549 million stake.
10. SBA Communications Corporation (NASDAQ:SBAC)
Latest Market Capitalization: $28.78 billion
SBA Communications Corporation (NASDAQ:SBAC) is another specialty REIT, and one that invests in telecommunication properties such as cell phone towers.
As of last year’s fourth quarter, 42 of the 943 hedge funds part of Insider Monkey’s database had bought SBA Communications Corporation (NASDAQ:SBAC)’s shares. The firm’s largest investor is Israel Englander’s Millennium Management since it owns $223 million worth in shares.
9. VICI Properties Inc. (NYSE:VICI)
Latest Market Capitalization: $32.88 billion
VICI Properties Inc. (NYSE:VICI) is an REIT based in New York. It owns some of the most valuable properties in America, such as Caesar’s Palace.
Insider Monkey profiled 943 hedge funds for their December quarter of 2022 investments and found out that 40 had invested in the firm. Out of these, VICI Properties Inc. (NYSE:VICI)’s largest investor is Ken Griffin’s Citadel Investment Group with a $293 million stake.
8. Welltower Inc. (NYSE:WELL)
Latest Market Capitalization: $36.45 billion
Welltower Inc. (NYSE:WELL) is an Ohio based REIT that owns and operates healthcare properties.
By the end of 2022’s fourth quarter, 25 of the 943 hedge funds polled by Insider Monkey had bought Welltower Inc. (NYSE:WELL)’s shares. Stuart J. Zimmer’s Zimmer Partners is its largest shareholder since it owns 3.8 million shares that are worth $251 million.
7. Realty Income Corporation (NYSE:O)
Latest Market Capitalization: $40.52 billion
Realty Income Corporation (NYSE:O) leases out properties to commercial entities.
24 of the 943 hedge funds part of Insider Monkey’s Q4 2022 survey had bought Realty Income Corporation (NYSE:O)’s shares. The firm’s largest investor is Stuart J. Zimmer’s Zimmer Partners with a $111 million stake.
6. Simon Property Group, Inc. (NYSE:SPG)
Latest Market Capitalization: $40.85 billion
Simon Property Group, Inc. (NYSE:SPG) 0wns shopping and hospitality properties all over the world.
As of December 2022, 33 out of the 943 hedge funds part of Insider Monkey’s database had invested in the firm. Israel Englander’s Millennium Management is Simon Property Group, Inc. (NYSE:SPG)’s largest investor as it owns $66 million worth in shares.
Equinix, Inc. (NASDAQ:EQIX), Simon Property Group, Inc. (NYSE:SPG), American Tower Corporation (NYSE:AMT), and Prologis, Inc. (NYSE:PLD) are some of America’s largest real estate companies.
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Disclosure: None. 20 Biggest Real Estate Companies in USA is originally published on Insider Monkey.
