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CBRE Report: Global Investment Volume Rises, Robust U.S. Market Drives Activity
Global investment volume increased 3.6% year-to-date, compared to the same period last year, with Q3 up by 1.2% (in fixed exchange rates), according to research by Los Angeles-based CBRE. Volume grew by a greater 5.9% YTD (in floating exchange rates, when taking into account last year’s strong appreciation of the U.S. dollar and its discounting impact on other currencies. The U.S. market, which accounts for more than half of the global transactions, registered a 17% year-over-year increase in Q3 and significantly boosted the overall growth.
CBRE’s Global Chief Economist Richard Barkham says, “Although interest rates are slowly rising, global growth is strong and investors remain committed to real estate. We see innovation in all areas of the property industry, including exciting changes in the office sector, which leads to new and interesting investment strategies.”
CBRE points out large-ticket commercial real estate M&A activity has leveled 2018 with 2015, the banner year for global real estate investment in the current cycle. Americas investment volume YTD was up 8.6% from the same period last year, and Q3 volume was up 13.3% year-over-year, reports CBRE. The surge in activity was enhanced by substantial entity transactions, such as Brookfield’s $15 billion takeover of GGP and Prologis’ $8.5 billion acquisition of DCT Industrial Trust.
Cross-border investment into the U.S. market exceeded $28 billion, including entity transactions, or 18% of the total investment in Q3. That was the second-largest quarter for capital inflow behind Q4 2015. Investment originating from Canada and Singapore made up 80% of the total inbound activity, notes CBRE.
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