Europe tops US in CRE deal volume

America outpaced for first time since 2017

National /
Aug.August 21, 2020 10:15 AM
President of the European Commission Ursula von der Leyen and President Donald Trump (Photos by Dursun Aydemir/Anadolu Agency via Getty Images and SAUL LOEB/AFP via Getty Images)

President of the European Commission Ursula von der Leyen and President Donald Trump (Photos by Dursun Aydemir/Anadolu Agency via Getty Images and SAUL LOEB/AFP via Getty Images)

The U.S. property market is no longer on top.

For the first time since 2017, Europe saw more commercial real estate deals than the U.S.

America saw $19 billion less in property trades above $10 million than Europe during the second quarter, Bloomberg reported, citing data from Real Capital Analytics.

Though Europe has a larger population, the U.S. has seen a greater number of Covid-19 infections and deaths. The public health situation creates “greater uncertainty around underwriting future income trends for a property” for investors, Jim Costello, senior vice president at RCA, said in the report.

“The social safety nets of European countries can look more expensive, but in a time of crisis, they can also help investors understand how economic losses will be distributed,” he said.

The U.S. property market has largely outperformed Europe since the 2008 downturn. In the fourth quarter of 2017, however, Blackstone’s sale of a European warehouse company for $13.8 billion gave the continent a bump.

Other reports have also indicated that the U.S. has seen the greatest drop in deal volume as a result of the pandemic. The Americas region saw deal volume fall 70 percent to $43 billion in the second quarter of 2020, according to CBRE, the biggest drop of any market. Deal volume in the Europe, Middle East and Africa market fell 38 percent. [Bloomberg] — Sasha Jones


Related Articles

arrow_forward_ios
Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)
Here’s what the $10M-$30M NYC investment sales market looked like last week
Here’s what the $10M-$30M NYC investment sales market looked like last week
Gov. Kathy Hochul
Hochul pitches conversion tax break. Will developers bite?
Hochul pitches conversion tax break. Will developers bite?
Vornado's Steve Roth with 1540 Broadway
Vornado writes down portfolio by $600M
Vornado writes down portfolio by $600M
A photo illustration of Mohegan Sun's Ray Pineault and Soloviev Group's Stefan Soloviev (Getty, Soloviev Group, Mohegan Gaming & Entertainment)
Soloviev partners with Mohegan on casino bid
Soloviev partners with Mohegan on casino bid
From left: Värde Partners’ IIfryn Carstairs and Hawkins Way Capital’s Ross Walker along with 525 Lexington (Getty, Värde Partners, Hawkins Way Capital, Google Maps)
Hawkins Way, Värde buy defunct Marriott East Side hotel
Hawkins Way, Värde buy defunct Marriott East Side hotel
Warehouse buildings
U.S. industrial sales dropped 30% toward normal in 2022
U.S. industrial sales dropped 30% toward normal in 2022
A photo illustration of 8 Spruce Street and 616 First Avenue (Getty, Google Maps)
NYC multifamily sales boomed, but party could be over
NYC multifamily sales boomed, but party could be over
47 West 175th Street in Morris Heights with Camber Property Group’s Rick Gropper and Vitus Group’s Stephen Whyte
Camber nabs Bronx apartment buildings to top midsize i-sales
Camber nabs Bronx apartment buildings to top midsize i-sales
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...