RCA Insights

Global Commercial Property Sales Fall Sharply Again in Q3

By on November 5th, 2020

Global sales of commercial property sank sharply in the third quarter of 2020 compared to a year ago, with deal activity across all the major property types slumping, the latest edition of Global Capital Trends shows. Deal volume fell 52% year-over-year and came in just a shade higher than the level seen in the second quarter of 2020, which was the lowest quarterly total since 2012.

Practical impediments to dealmaking, uncertainty about the future for some property types, and the fragile economic picture took their toll on activity. Relatively, sales volume involving individual assets held up best in the quarter, though the total dropped 44% year-over-year. Sales of portfolios sank 64% and entity-level sales slumped 84%, with no M&A-type activity seen in the Americas region for the second quarter in a row.

For the year so far, most markets are falling far short of activity seen in 2019. One exception is South Korea, as shown in the new edition of Asia Pacific Capital Trends, also released this week. Activity jumped in the third quarter of the year, with commercial property sales volume eclipsing that of both China and Japan.

 

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RCA clients <<click here>> to access the latest editions of Global Capital Trends and Asia Pacific Capital Trends. To learn more about how RCA’s reports, data and tools can aid your investment decision, contact us.

Also on RCA Insights:

No Q3 Comeback for Cross-Border Deal Activity in US

European Deal Volume Slides in Q3, Germany Drops

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Simon Mallinson

Executive Managing Director, EMEA & APAC
smallinson@rcanalytics.com

Based in London, Simon Mallinson joined Real Capital Analytics in January 2013. Simon has board level responsibility for EMEA and APAC, with a particular passion for the continued development of RCA’s industry-leading client service and capital markets analytics.

Previously, Simon was Senior Director leading European Research at Invesco Real Estate. Prior to Invesco, Simon held a number of roles with IPD (now part of MSCI) in London and the United States. As Head of US Services, based in Chicago, he established IPD’s first North American office.

Simon is a Board Member of US association NCREIF, a member of RICS and is active across a number of other global real estate associations. He holds degrees from both Leeds and Manchester University, UK. Simon has set foot in 48 U.S. states and is looking for an excuse to visit Maine and Alaska.