More distress deals to take place as investment remains subdued in H2

These deals made up 50% of the investment deals in Q2

More distress deals will take place as commercial real estate investment sentiment remained subdued in Q2, according to Colliers.

In Q2, 50% of big-ticket deals were distressed deals, with some deals closed with sellers realising a capital loss of around 60% compared with their purchase price in 2017–18

Colliers predicts that sellers will become more realistic and more distressed deals will take place, whilst any potential U.S. Fed interest rate cut should boost buyers’ confidence to enter the market

Despite an uptick of +175% QoQ in the number of big-ticket deals, most were less than $200m, dropping total investment volume to $5.3b,  a dip of 4.6% QoQ.

As such, Colliers forecasts transaction volume in H2 to slightly edge up to $20b, from the low base in H1, pushing 2024’s total volume to $30b. However, this is still a YoY decline of 19%.