For a while we have been interested in the relationship between global M&A (Mergers and Acquisitions) activity and CRE (Commercial Real Estate) investment. Strong M&A activity is highly correlated with strong CRE investment levels.
The latest data shows that the value of global M&A is approaching the market level of 2007(1). A 30% year-over-year increase through the first three quarters of 2018 (totaling US$3.1 trillion) puts M&A transaction value just 7% below the same period of 2007. Given the current momentum, 2018 may eclipse 2017 as the best year ever for corporate consolidations.
Figure 1 exhibits the global volume of M&A and real estate transactions in TTM (Trailing-Twelve-Month) values with a smoothed trendline of quarterly M&A(2).
