RCA Insights

Another Down Month for US Deal Volume in February

By on March 24th, 2021

U.S. deal volume tumbled across the property types in February, the latest edition of US Capital Trends shows. The absence of any blockbuster entity-level deals in the industrial sector threw a harsh light on comparisons to transaction volume of a year ago. Still, individual industrial asset sales were near a record level.

Total U.S. transaction volume dropped 59% in February compared to a year earlier. Sales in the office sector fared the worst of the major property types, falling 71% year-over-year, while apartment sector deal volume declined 33%. In the industrial sector, sales of individual assets dropped just 6% from a year ago though the sector in total dropped 69%. Portfolio and entity-level sales tumbled 90% with no supersized deal last month to match the Prologis acquisition of Liberty Property Trust in February 2020.

The new edition of US Capital Trends also reveals the trends across the major lender groups in 2020. After a pause in the second quarter of 2020, CMBS and investor-driven lenders gained ground into the end of the year, capturing a combined 19% share of the U.S. lending market in the final quarter.

USCT Big Pic Feb 2021 thumbnail

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Clients of Real Capital Analytics <<click here>> to download the latest US Capital Trends report from the RCA website. In this edition we examine the lender trends of 2020, charting the activity of CMBS, investor-driven, agency, private, bank and other lenders throughout the pandemic year. The top originators of 2020 are ranked. We also report on February 2021 investment sales activity and pricing.

To learn more about how RCA’s reports, data and tools can inform your investment decisions, contact us.

 

Jim Costello

Jim Costello

Senior Vice President
jcostello@rcanalytics.com

Jim Costello has worked in the CRE space on issues of urban economics since 1990, including a 20-year stint at Torto Wheaton Research. Jim expanded the reach of the Torto Wheaton Research team developing forecasts of global market fundamentals. He also developed approaches to pair the forecast results with frameworks to answer investor questions on asset values and relative investment opportunities.

In the aftermath of the Global Financial Crisis, Jim provided advice to the Treasury Department and helped educate these professionals on commercial real estate performance. Jim is a member of the Commercial Board of Governors of the Mortgage Bankers Administration, where he helps policy makers understand the commercial real estate industry.

Jim is expanding the capabilities of the Real Capital Analytics team on issues of real estate market dynamics. Jim has a master’s degree in economics and is a member of the Counselors of Real Estate.