hot-air-balloon-logos-industrial-commercial-real-estate-feature
Some of the biggest transactions for Q2 came from multi-billion dollar deals. Image – Canva.
  • Office property was uprooted as the top dog
  • Industrial sector dominated commercial real estate
  • NSW topped the states for transaction activity

Cushman & Wakefield’s latest figures on commercial real estate (CRE) transactions show an astounding number.

Back in the final quarter of 2018, transactions hit $16.6 billion. The second quarter of 2021 has now come close, at $16.2 billion.

In the twelve months to June, the rolling annual volume came to $38.8 billion.

The Property Tribune reported earlier this month, some 37% of investment in office property came from overseas investors. Cushman & Wakefield’s figures for the broader CRE market showed foreign investors made up 35% of overall transactions.

Sales were dominated by the industrial sector, the second quarter of 2021 totalled $8.3 billion across 57 transactions. That compares with a much smaller office sales figure of $3.9 billion, a sector that is usually the dominating sector.

Cushman & Wakefield said some of the most significant transactions came from Blackstone’s Milestone Logisitcs sale to ESR for $3.8 billion, a purchase by Logos Property from Qube worth $1.65 billion, and another by Charter Hall for $270 million.

Quarterly commercial real estate investment volume (A$ billion)

cushman-wakefield-2021-q2-report-cre
Source – Real Capital Analytics, Cushman & Wakefield.

The office sector only comprised 24% volume, taking second place behind industrial with 51% of Q2 2021 transaction volumes.

Retail real estate on the other hand achieved $2.6 billion, and the remaining ‘other’ category saw $1.2 billion transacted – the report only recorded transactions greater than $5 million.

Investment by sector (A$ billion)

cushman-wakefield-2021-q2-report-investment-cre
Source – Real Capital Analytics, Cushman & Wakefield.

Australia wide transactions clocked up the highest number, making up 37% of transactions or $6 billion. Purchases in New South Wales came next with 28% or $4.6 billion. Victoria was third with $2.4 billion, Queensland $2.1 billion.

Transaction activity by location

cushman-wakefield-2021-q2-report-state-cre
Source – Real Capital Analytics, Cushman & Wakefield.
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