RCA Insights

Chart: Global Activity Tracker; Weakness Spreading

By on April 14th, 2020

Commercial real estate investment activity in the Americas is starting to ebb as the global health crisis reverberates, the latest Real Capital Analytics data indicates.

Looking at deals priced at $10 million or greater recorded in the first full 13 weeks of 2020, deal volume in the Americas is down 1% on the same period in 2019. For Europe, Middle East and Africa (EMEA), transaction activity is 18% lower than the prior year, with the region’s decline steepening since RCA’s week 11 update. In Asia Pacific, activity is down 56% compared with 2019, in line with drops reported earlier. (March deal volume data is a preliminary reading.)

The impact of the COVID-19 pandemic is expected to become more evident in the second quarter of 2020 for the Americas and EMEA as large-scale shutdowns only began to occur in these regions in early March. Commercial real estate transactions are typically in progress for several months before completion, meaning March transactions could have started in Q4 2019 or even earlier.

Real Capital Analytics clients can access the first full reading of Q1 2020 U.S. transaction data on April 22 with the release of US Capital Trends. Data for Europe will be published April 29 and for Asia Pacific on May 6. 

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Data analysis by Beatrice Ginieis

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Previous global deal updates on RCA Insights:

Chart: Global CRE Deal Activity Tracker, Week 11 Update

First Signals on Deal Activity Amid Virus Disquiet