The Racial Gap in Commercial Real Estate Ownership

Just three percent of Black households own commercial real estate, making it more difficult for Black entrepreneurs to establish businesses and build wealth.

2 minute read

July 20, 2022, 6:00 AM PDT

By Diana Ionescu @aworkoffiction


Line of vacant small storefronts with For Sale signs in Merrill, Oregon

Esteban Martinena Guerrer / Vacant storefronts in Merrill, Oregon

According to an article by Tracy Loh and Andre Perry in Bloomberg CityLab, the racial gap in property ownership is just as stark in commercial real estate as in homeownership. “Only 3% of Black households own commercial real estate, compared with 8% of white households, and their holdings are much smaller — valued at just $3,600 on average, compared with nearly $34,000 for white households,” according to a Brookings report.

This matters because “Nonresidential commercial real estate generated $512 billion in revenue in 2020. What’s more, racial disparities in commercial property ownership impede Black entrepreneurship, since most Americans who start businesses use their personal wealth — chiefly the equity tied up in property.” As the article explains, “This disparity leaves Black Americans with less capacity to establish and grow their firms — and their wealth.”

The authors also note that property in Black neighborhoods is often undervalued, putting owners in those areas at a disadvantage. “ This costs commercial property owners some $171 billion in aggregate wealth,” according to the Brookings analysis.

“The way to end this cycle is to diversify the owners of commercial real estate as well as change the rules that guide investment.” The authors point to Chicago-based TREND, a social enterprise dedicated to changing the landscape of commercial property ownership by facilitating more equitable ownership models. In one example, TREND invited local residents to become co-investors in a 47,000 square foot shopping center for as little as $1,000. “This innovative ownership model creates wealth for investors and provides opportunities for Black entrepreneurs and community residents to work on the property.”

Wednesday, July 13, 2022 in Bloomberg CityLab

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight