M&A News In The Commercial Real Estate Industry Sector

M&A News In The Commercial Real Estate Industry Sector

By Peter Moore

April 23, 2018

The report below gives a good overview of the second quarter M&A activity in the Commercial Real Estate Industry Sector. According to data released by Ten-X Commercial, a leading transaction platform for commercial real estate, commercial real estate transaction volume edged down to $117.4 billion in Q4 2017 representing a 0.5 percent decline from the prior quarter.
Following two quarters of growth, the minor drop can be linked to a $6.7 billion decline in deal volume in the industrial sector. In comparison to the same period a year earlier, investment activity plunged by 13.2 percent.

Industry Indicators

  • US corporate profits, an indicator of commercial real estate demand, rose 5.4% in the third quarter of 2017 compared to the same period in 2016.
  • The value of US nonresidential construction spending, a driver for commercial real estate management demand, rose 3.3% year-to-date in January 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 4.5% as of the week ending March 9, 2018, up from a rate of 3.75% the same week in 2017

Posted by Peter Moore.

Read the Entire Commercial Real Estate M&A 2nd Quarter Newsletter Here