2025 in review
After a slow start and high expectations, 2025 proved to be a reset year for commercial real estate M&A. Global deal value fell 57% to $88.7 billion and deal count dropped 74% as many transactions stalled amid financing uncertainty. Even so, capital did not disappear; rather, it became more selective—concentrating in fewer, larger, and more deliberate deals.
A rise in deal selectivity
Global M&A activity contracted sharply in 2025, with deal count falling from 3,286 to 846 transactions. But rather than signaling a lack of interest, this shift points to a market where investors prioritized conviction over deal volume.
The power of scale
While deal volume declined, average deal size more than doubled to $255 million. In the United States, average deal size reached $300 million compared to $224 million globally, underscoring continued demand for large, US-centric opportunities.
Mixed signals in property sales
Global property sales remained near multi-year lows, with transaction activity rising just 3.5% and dollar volume up 8%. In contrast, US property sales showed early signs of recovery, with volume increasing 23% and transactions up 12% after two subdued years. Even so, M&A activity stayed constrained, with US deal count falling 82%, reflecting a market still working through valuation gaps and delayed transactions.
