Rate of busted deals in US commercial real estate increased 4x

The Real Deal New York released an article including key data points that were pulled from Real Capital Analytics.  Here are some key items to note:

  • The number of terminated contract deals as a percentage of closed transactions has jumped across the U.S., Europe, and Asia Pacific as tally of completed transactions in those geographies has also sunk

  • .4% of in-contract deals in the U.S. fell apart between 2015-2019.  This rate increased 4x as CBRE reported that after March, “busted” deals rose to 2.5%

  • The largest “busted” deal in the U.S. was between South Korea’s Mirae Asset exiting the contract to purchase a $5.8B hotel portfolio owned by China’s Anbang Insurance Group. The portfolio included properties in New York, Jackson Hole, and San Francisco

#Covid19 #Brokerage #Downturn #RCA

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