NEW YORK—Global acquisitions of commercial property dropped by 5% in the first half of 2019 compared with a year prior, according to Real Capital Analytics. Sagging activity in Europe and Asia Pacific led the downfall, according to RCA’s Global Capital Trends. Of the top 10 largest investment markets in the world, only the US and Australia held onto activity levels seen a year earlier.
Investors appear eager to deploy capital, but RCA cautions that their activity in the second half of the year may continue to be affected by macroeconomic and political headwinds including international trade wars and Brexit’s impact on the UK and Europe.
Perhaps more worrisome, the flow of capital between the continents dropped to the lowest proportion of global volume since 2013, the Global Capital Trends showed. Capital into the Americas—predominantly the US market—dropped by almost one-half compared to a year earlier.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
