M&A and Strategic Transactions Monitor

Our M&A and Strategic Transactions Monitor highlights critical shifts in commercial real estate capital markets.

Real Estate Capital Markets Spotlight

• REIT M&A Featuring Concurrent Asset Sell-Downs: Asset sell-downs have become increasingly common in large-scale M&A deals
• Specialization vs. Diversification: Real estate investment strategies moving from sector diversification to sector specialization
• Cost of Equity for Public and Private Real Estate Investors: Rising as investors perceive increased risk in real estate

Real Estate Capital Markets Themes

• REIT Sector Performance: REITs have lagged both broader markets and a composite of high-yield sectors over the last five years
• REIT Fundraising Activity: REITs increasingly relying on private markets for capital raising
• REIT Transaction Activity: REIT transaction volume impacted by persistent NAV trading discounts
• Debt Market Recovery: Rate compression combined with flat cap rates is enabling value-add deals to meet investor return requirements

Real Estate Deep Dives

• CRE Investing: CRE values did not overheat and have been de-risked since 2022, offering greater relative value
• CRE Capital Markets: Record levels of capital targeting fewer transactions
• Office Sector: AI concentration highly correlated with office demand & liquidity; Bay Area office volume increased 133% YoY in 2025
• Multifamily Sector: Supply wave easing at a different pace across US markets
• Retail Sector: Strong fundamentals in top-tier malls highlight market segmentation
• Industrial Sector: Industrial leasing activity improves; vacancy picture continues to be mixed