Real estate deals are collapsing across the country as a result of the Covid-19 pandemic. That's according to a new report by Real Capital Analytics, which says the percentage of deals falling out of contract in US, European and Asian markets have jumped in recent months, while at the same time the total number of completed deals in those areas have sunk as well.
Specifically, the report said the number of terminated contract deals as a percentage of closed transactions has risen from 2.1% in April to 2.9% in May. That number is up significantly over the 0.7% of deals that fell through in March, and is seven times the average percentage of deals falling through between 2015 and 2019, according to the report.
The report also noted that number is still far below the 12.8% fall-through rate the markets saw during the peak of the Great Recession towards the end of the 2000s.
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Max Mitchell
Max Mitchell is ALM's Regional Managing Editor for The Legal Intelligencer, New Jersey Law Journal, Delaware Business Court Insider and Delaware Law Weekly. Follow him on Twitter @MMitchellTLI. His email is [email protected].
