Single asset sales drove the increase, notably deals over $250 million, which rose 35% quarter-over-quarter and 30% year-over-year (YoY). For the calendar year, transaction activity totaled $540.6B—down 2% YoY. The decline in volumes was entirely attributable to a slowdown in entity/M&A deals, particularly compared to the extremely elevated levels recorded in 2018.
• Transaction activity accelerated significantly in tech-oriented markets in 2019, notably the San Francisco Bay Area (+17% YoY / +$5.6B), Seattle (+52% YoY / +$8.4B), Boston (+26% / +$4.1B) and Austin (+34% / +$2.6B)
• Industrial volume rose dramatically in 2019—up 17% YoY, accounting for a record 19% of transaction activity
• Institutional acquisitions reaccelerated for a second year—up 11% YoY to $141B, just shy of the cycle record set in
• Cap rates were broadly stable in 2019 despite significant movement in interest rates. Industrial yields continued to
compress in 2019, particularly in secondary markets (down 37 BPS)
• The NCREIF National Property Index total return decelerated modestly to 6.4% in 2019. Industrial (13.4%) and suburban office (8.0%) continued to deliver the highest returns.