RCA Insights

Global Commercial Real Estate Activity Sags in Q1

By 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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Simon Mallinson

Executive Managing Director, EMEA & APAC

Simon Mallinson joined Real Capital Analytics in January 2013. Based in London, 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.