A surge in real estate mergers and acquisitions (M&A) is signaling a broader shift in how value is created across the industry, with operational expertise taking precedence over financial engineering. Steve Luthman, head of global real estate at Hines, in an interview with IREI, discusses how consolidation is being driven by the rise of operator-led platforms rather than a simple rebound in dealmaking. He explains the growing need for in-house operating capabilities, how integrated platforms are reshaping margin potential and decision-making, and why execution at the asset level is becoming the primary source of value creation
A recent report shows a 40 percent surge in real estate M&A over the past two years. What is driving this wave of consolidation, and to what extent does it reflect a cyclical rebound in dealmaking versus a more structural shift in how real estate investment managers operate?
The consolidation we are seeing within real a
