Exit and Growth Strategies for Middle Market Businesses

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

By Peter Moore | Feb 19, 2020

The report below gives a good overview of the first 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$260 billion in Q3 2019, up by 7% over the previous quarter but down by 2% from Q3 2018. The U.S. recorded a relatively soft third quarter due to political uncertainty, low yields and some recession fears.

Investment volume in the Americas declined by 17% year-over-year an, mainly driven by lower volumes in Canada and the U.S.

Industry Indicators

  • The bank prime loan rate, which indicates changes in the rates available for real estate financing, was 4.75% as of the week of December 16, 2019, down from a rate of 5.25% the same week in 2018.
  • The value of US nonresidential construction spending, a demand indicator for real estate, rose 2.2% year-to-date in October 2019 compared to the same period in 2018.
  • The value of US residential construction spending, a key indicator of real estate demand, dropped 7.1% year-to-date in October 2019 compared to the same period in 2018.

Posted by Peter Moore.

Read the Entire Commercial Real Estate 1st Quarter Newsletter Here

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