NEW YORK CITY-Mergers and acquisitions in the industry are likely to slow down next year from their booming pace since 2006, though the retail sector could still experience some larger transactions despite the credit crunch, said speakers here at the Deal magazine’s M&A Outlook conference. In retail, it makes more sense to operate larger portfolios rather than make one-off deals, pointed out Lisa Eyles Beeson, head of real estate mergers and acquisitions at Lehman Brothers, during a panel discussion.

Additionally, a slowdown in private-equity acquisitions in real estate is not likely to devalue the retail sector because established public REITs like Simon Property Group and General Growth Properties are more experienced at running their assets, said John Kris, a Moody’s managing director. “They have better systems, better people and a better platform,” he said at the event, held at the Ritz Carlton in Downtown Manhattan.

Since 2006 in the US, investors have spent $100 billion on real estate acquisitions, and 80% of those dollars were allocated by private-equity firms, said Seth Weintrob, a managing director at Morgan Stanley Real Estate. “I imagine that’s going to slow substantially,” he said, prediction a drop off between 50% and 75% next year.

Beeson said the industry will still see sizable deals, mostly in the $500-million to $2-billion because there is “still a lot of capital out there.” Investors like pension funds, which don’t demand such high returns could step up their activity in the near future.

Speaking earlier, David Rubenstein, cofounder of private-equity firm the Carlyle Group, said the economy has experienced slow period in the M&A climate before, but it never lasts long. “After each pause, the industry emerges stronger than ever before,” he said, explaining that it is in a “rest period right now.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.