By Simon Mallinson on May 10th, 2019
Global commercial real estate activity sagged in the first quarter of 2019, as economic and political worries across the regions dampened investor appetite, the latest edition of Global Capital Trends shows. Entity-level deals, which had boomed in 2018, were largely absent at the start of this year.
High pricing and challenges in sourcing suitable assets were also obstacles to investment activity across many regions. The world’s leading country markets all stumbled at the start of the year, with the U.S. recording the shallowest decline compared with levels a year ago.
Entity-level deals, which had helped make 2018 the second strongest year on record for global commercial real estate investment, contributed just 2% to overall activity in the first quarter of 2019. With the difficulty of sourcing single assets and the significant volumes of private equity capital raised by investors, this megadeal activity is unlikely to remain subdued.
If you are a current RCA subscriber, log into your account to download the latest Global Capital Trends. RCA’s next report on global commercial real estate prices, RCA CPPI Global Cities, will be published May 16.
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