Rising interest rates haven’t derailed a steady pipeline of merger and acquisition activity in commercial real estate at least not yet. The sector has seen a number of mega-mergers announced this year but not well above the historical average.
Coming off of one of the strongest years on record, the REIT market is relatively well placed despite the recent volatility. JLL’s Strategic Transactions Monitor details themes driving the REIT market, including a constructive outlook in light of sharply rising rates, an increase in take-private activity and dissipating COVID-19 driven trends.
Inflation continues to rise and historically, REITs have delivered competitive total returns and many pay dividend income. Click here for our list of 3 REITs to invest in to fight inflation.
Outperforming strong expectations and driven both by strategic and private capital, 2021 has already been a record year for REIT M&A, which hit $108 billion in transaction volume as of September 30, 2021.