REIT M&A: Much Since 2000, Much More Ahead

NEW YORK CITY—As part of our 15th-anniversary celebration, the editors of GlobeSt.com sounded out the members of advisory board for their thoughts on the moments that have defined commercial real estate since 2000. Some of these events, such as the 2008 capital markets meltdown and 9/11, were one-time occurrences with long-term implications. Others, such as consolidation and privatization in the REIT sector, are ongoing.

In the view of GlobeSt.com’s advisors, these mergers and acquisitions have had a profound effect. For one thing, as Merrie Frankel, VP and senior credit officer with Moody’s Investors Service, points out, REIT consolidation has created “bigger companies with access to the capital markets.” Sean O’Shea, managing director of the net lease group at BRC Advisors, sees a dramatic impact on all sectors.” In particular, he cites the impact that the merger between Cole Real Estate Investments Inc. and American Realty Capital Properties had on pricing and performance in single-tenant net lease.