Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Commercial Real Estate Industry Sector

By Peter Moore | Oct 21, 2019

The report below gives a good overview of the fourth quarter M&A activity in the Commercial Real Estate Industry Sector. According to data released by CBRE, a leading commercial real estate firm, global investment volume totaled US$428 billion in H1 2019, down by 10.6% from H1 2018. The Americas was the only global region with year-over-year investment volume growth (+0.7% to US$128 billion) in Q2. Americas’ transaction volume totaled US$235 billion in H1, down 5% from H1 2018.

There was an increase in office transactions in Q2, though the industrial and hotel sectors leveled off. The most active U.S. sector was multifamily.

Industry Indicators

  • The bank prime loan rate, which indicates changes in the rates available for real estate financing, was 5.25% as of the week of August 13, 2019, up from a rate of 5% the same week in 2018.
  • The value of US nonresidential construction spending, a demand indicator for real estate, rose 5.0% year-to-date in June 2019 compared to the same period in 2018.
  • The value of US residential construction spending, a key indicator of real estate demand, dropped 7.8% year-to-date in June 2019 compared to the same period in 2018.

Posted by Peter Moore.

Read the Entire Commercial Real Estate 4th Quarter Newsletter Here

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