REITs have overcorrected, and that has certainly led to M&A activity, says Scott Crowe, chief investment strategist for CenterSquare. The industrial sector has seen two recent multibillion-dollar REIT acquisition deals, with private equity firm Blackstone acquiring Gramercy Property Trust and Prologis acquiring DCT Industrial Trust.

If Blackstone’s recent activity is any indication, this is indeed a buying opportunity for private equity funds, says Peter Zabierek, CEO at Presima. In addition to the Gramercy acquisition, in May Blackstone closed a deal to purchase the Canadian REIT Pure Industrial Real Estate Trust, and in June Blackstone agreed to buy luxury-hotel owner LaSalle Hotel Properties. “For intrepid buyers, notable discounts appear to still persist in many retail and office stocks, which combined comprise over half of the U.S. REIT market,” observes Zabierek.

For the year ended June 30, 2018, 30 M&A deals totaling $63 billion were announced or c