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

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

By Peter Moore

April 19, 2019

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 CBRE, a leading commercial real estate firm, commercial real estate investment volume rose 20.6% year-over-year in Q4 to $152.4 billion. Total investment for the year was $534.8 billion, a sizable increase of 14.8% from 2017.

The largest investment in Q4 was in the major metro markets of New York, Los Angeles and the San Francisco Bay Area. Those three regions accounted for 27.7% of all investment dollars. Additionally, the top-15 markets accounted for 64.4% of total Q4 investment volume.

Industry Indicators

  • US corporate profits, an indicator of commercial real estate demand, rose 7.4% in the fourth 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 5.5% as of the week of March 14, 2019, up from a rate of 4.75% the same week in 2018.
  • The value of US nonresidential construction spending, a driver for commercial real estate brokerage and management demand, rose 4.7% year-to-date in January 2019 compared to the same period in 2018.

Posted by Peter Moore.

Read the Entire Commercial Real Estate 2nd Quarter Newsletter Here