Research - APRIL 7, 2021

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Surge in M&A suggests strong CRE investment activity

by Andrea Zander

Corporate merger & acquisition (M&A) activity and commercial real estate (CRE) investment volume have a strong correlation, particularly when market sentiment is buoyant, reported CBRE.

Global M&A rebounded very strongly in H2 2020, reaching $2.2 trillion — the highest half-year total on record. This put 2020’s full-year M&A volume just 7 percent below the 2019 level. The pace of activity has continued to recover rapidly in 2021. Debt and equity markets have continued to improve, as has business confidence, especially in the technology, media and telecommunications (TMT) sector.

“Capital continues to target the real estate sector with significant dry powder in private equity, recovering public equity pricing and good liquidity in the credit markets,” said James Scott, managing principal of CBRE Capital Advisors. “Despite lower real estate M&A volumes in 2020 due to the impact of the pandemic, we expect the continued appetite for the space

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