Global transaction activity fell by 48 percent year-over-year in 2023 to $615 billion, the lowest since 2012 (2022 deal volumes fell 17 percent year-over-year to $1.18 trillion, according to Tom Leahy, executive research director at MSCI, in his recent blog post.
Markets that boomed post COVID experienced the sharpest slowdown. These include Germany, Sweden and the United States.
In addition, Leahy writes about how the changing usage of office space has resulted in falling rents and higher vacancy rates; the increase in hybrid working and technical obsolescence (buildings failing to meet net-zero objectives of owners and occupiers alike) pose challenges to office markets across the globe; new, well-located and well-amenitized office buildings generally remain desirable; and poor-performing sectors are leading to distress for lenders.
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