RCA Insights

Global Deal Activity Holds Up in Q1 Even as APAC Slides

By on May 7th, 2020

The total tally of global commercial real estate trading was little changed in the first quarter of 2020 despite the coronavirus crisis, as growth in the U.S. and Europe outweighed the Asia Pacific region’s slide. Direct acquisitions of income-producing property assets dipped just 1% from a year ago, the new edition of Global Capital Trends reports.

Activity in Asia Pacific fell by 50% year-over-year to the lowest level since the Global Financial Crisis. The volume of land deals was down 37%. In Hong Kong, activity plummeted during the first quarter and there were no recorded deals by cross-border investors, as reported in the latest edition of Asia Pacific Capital Trends, also released this week.

In the major markets of North America and Europe, much of the quarter’s trading volume was already in the books before government lockdowns and crisis management began in mid-March. Still, across all regions the count of unique buyers has been shrinking, a harbinger of weaker deal activity and liquidity.

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