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Corporate real estate disposals see record highs in 2021
Following a steady flow of sales in 2020, corporate real estate disposals in Asia Pacific surged to record highs in 2021, with 762 deals worth a combined total of US$44.4 billion completed as sellers capitalised on strong pricing to offload assets, according to a May report from CBRE, What’s Next for Corporate Real Estate Monetisation in Asia Pacific?
While pandemic-related uncertainty led to Asia Pacific commercial real estate investment volume falling by 6.5 percent year-over-year in 2020, corporate sales activity accelerated by 53 percent over the same period, with strong momentum continuing into 2021.
Roughly 73 percent of this corporate sales activity involved disposals (owner vacating). Deals generally involved corporates disposing of older assets that nevertheless commanded strong pricing thanks to upbeat market conditions, with buyers (mostly investors) undertaking value-added or development/opportunistic strategies.
Sale-leaseback deals accou