The first quarter of 2019 experienced lower deal volume given financial market volatility, the government shutdown and a number of other externalities (similar to the first quarter of 2018). Nonetheless, the data suggests that the backdrop is set for deal volumes to accelerate -- economic and operating fundamentals remain stable, available capital continues to grow (particularly when factoring in shadow capital from technology firms as an example), and geopolitical and policy risks continue to recede. The operating environment is not without risk and we remain focused on any weakness that could be caused by matters such as global rent control and technology sector underperformance.
"Despite lower volumes in the first quarter of 2019, we expect deal volume to accelerate over the balance of the year as geopolitical risks subside and interest rate path uncertainty recedes given the continued stability in economic and operating fundamentals and capital availability."
Real Estate Deals Leader, PwC US
Real Estate Acquisitions Leader, PwC US