Megadeals Overshadow Commercial Property Sale Slowdown

A record level of merger activity helped boost August commercial real estate sales volume, masking a more measured pace of individual asset sales.

Total sales volume in August was $107B, boosted by $70B in M&A-type sales, according to MSCI. Megadeals lifted transaction volume 127% year-over-year in August, but total sales excluding M&A were down roughly 21% compared to last year.

M&A deal volume was at a record pace for a single month in August, and the data reflects a highly liquid market, but one where the expansion of deal volume is slowing, MSCI analysts wrote. 

Rising interest rates and the shifting capital markets environment were unlikely to have scuttled many deals in August but could put pressure on activity in the months ahead, analysts at JPMorgan Chase wrote in a note to investors...

   ...more

RSK: Trophy properties and mega deals are skewing the actual amount of building sales if you only use purchase price.