Real Estate M&A in the Americas: A region of divergence
While global deal activity experienced a modest year-over-year decline of 5%, the AMER region demonstrated a more dynamic picture, with a 33% year-over-year growth.
By AnsaradaThu Feb 27 2025Mergers and acquisitions, Advisors, Industry news and trends
Real estate M&A activity in the Americas in Q3 2024 presented a marked contrast to the global trend. While global deal activity experienced a modest year-over-year decline of 5%, the region demonstrated a more dynamic picture, with a 33% year-over-year growth. This significant divergence from the global average suggests unique factors are driving the real estate M&A landscape in the Americas.
This article provides a glimpse into the key trends shaping the Americas real estate M&A market in 2025. For a more in-depth analysis, including global market forecasts, download our comprehensive 2025 Global Real Estate M&A Outlook Report. The report dives deeper into the factors driving deal activity, identifies emerging global opportunities, and provides valuable guidance for deal makers in the Real Estate sector.
Key Takeaways
- The Americas region experienced a 55% increase in Q3 2024 quarterly growth compared to Q2 2024. Year-on-year decline of 28% indicates a shift in investor sentiment.
- Stronger quarterly growth is fueled by robust economic performance, strong demand for e-commerce and logistics assets, and growing demand for housing.
- Future concerns of rising interest rates, inflation and the potential for an economic slowdown could impact investor sentiment and slowdown deal activity.
Strong quarterly growth amidst year-over-year decline
The Americas region experienced robust quarterly growth in Q3 2024, with a 55% increase compared to Q2 2024. However, this strong quarterly performance contrasts with a year-over-year decline of 28%. This suggests a period of volatility and potential shifts in investor sentiment within the region.
Key drivers of growth in the Americas
Several factors likely contributed to the strong quarterly growth observed in the Americas region.
Robust economic performance: The Americas, particularly the United States, have demonstrated greater economic resilience compared to some other regions. The US economy has shown consistent growth in recent years, driven by factors such as strong consumer spending, a robust labor market, and technological innovation. This strong economic performance translates into increased investor confidence and a more favorable environment for real estate investment. Companies with strong financial performance are more likely to pursue expansion strategies, including acquisitions, to capitalize on market opportunities.
Strong demand for certain asset classes: The continued growth of e-commerce and the rise of the logistics sector have driven strong demand for industrial and logistics properties. This includes warehouses, distribution centers, and fulfillment centers to support the growing needs of online retailers and supply chains. The surge in e-commerce activity has significantly increased the demand for efficient and strategically located logistics facilities, making them attractive investment targets for real estate investors.
Growing demand for residential properties: The growing demand for housing, particularly in urban areas, has fueled investment in residential properties, including multi-family and single-family homes. Factors such as population growth, urbanization, and changing demographics are driving this demand.
Focus on long-term growth: Investors are increasingly seeking long-term growth opportunities in the Americas, driven by factors such as population growth, urbanization, and economic diversification. The region offers a diverse range of investment opportunities across various sectors, including residential, commercial, industrial, and hospitality.
Challenges and considerations
Despite the positive signs, the Americas region also faces challenges. Rising interest rates, inflation, and the potential for an economic slowdown could impact investor sentiment and dampen deal activity.
Furthermore, the increasing focus on ESG factors and the need for sustainable development will continue to shape investment decisions and influence the types of real estate assets that are most attractive to investors.
Looking ahead
The future of real estate M&A in the Americas will likely be shaped by a combination of economic, demographic, and technological factors. The continued growth of e-commerce, the rise of urbanization, and the increasing importance of ESG considerations will continue to drive investment activity in certain sectors.
Real estate M&A in the Americas FAQ’s
How many M&A transactions are there in the US?
For the calendar year of 2024, the amount of M&A transactions increased by 8% to 7,784 up from 7206 in 2023. The total deal volume increased by 9% to 2763 in 2024 from 2524 in 2023. The total revenue from M&A deals over $25 million rose to $3.4 trillion in 2024, increasing 12% from $3.1 trillion in 2023.
What is M&A in real estate?
Mergers and acquisitions in real estate refer to real estate investors purchasing real estate companies or properties. Investors use mergers and acquisitions to gain ownership of commercial or residential real estate assets. Bigger companies acquire smaller companies to have better cash flow, achieve better profits through economies of scale and expand their portfolio.
Which industry has the most M&A activity?
With the rise of artificial intelligence and software advancements, the technology sector has the most M&A activity. In 2024 alone, there was $698 billion in over 1460 deals with 60% occurring in the Americas region. Companies specialising in AI, robotics and automation made up 35% of M&A deals in 2024.
