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Exit and Growth Strategies for Middle Market Businesses

M&A News In The Commercial Real Estate Industry Sector

By Peter Moore | Aug 06, 2018

The report below gives a good overview of the third quarter M&A activity in the Commercial Real Estate Industry Sector. M&A activity for North American based target companies in the Commercial Real Estate sector for Q2 2018 included 57 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in June when industry leader CBRE Group, Inc., diversified its services by acquiring FacilitySource LLC from Warburg Pincus LLC for US$290 million in cash. The acquisition strengthens CBRE’s ability to deliver integrated solutions for occupier clients. Founded in 2005, FacilitySource is located in Columbus, Ohio and provides outsourced integrated facility support services.

The 30-year fixed rate mortgage in the United States steadily rose in 2018 but began to decline slightly toward the end of Q2, which could spur activity in the commercial sector.

Industry Indicators

  • US corporate profits, an indicator of commercial real estate demand, rose 4.3% in the first quarter of 2018 compared to the same period in 2017.
  • The bank prime loan rate, which indicates changes in the rates available for real estate financing, was 4.75% as of the week of June 13, 2018, up from a rate of 4.25% the same week in 2017.
  • The value of US nonresidential construction spending, a driver for commercial real estate brokerage and management demand, rose 5.1% year-to-date in April 2018 compared to the same period in 2017

Posted by Peter Moore.

Read the Entire Commercial Real Estate M&A 3rd Quarter Newsletter Here


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