Audio – Jones Lang CEO says days of big real estate deals are over
The days of multi-billion dollar deals for real estate companies, such as Blackstone Group’s $23 billion purchase of Equity Office Properties earlier this year, are probably over — at least for now. That’s the view of Colin Dyer, the CEO of Jones Lang LaSalle, which is one of the largest real estate services firms in the world. “That may have been the last of the big deals that gets done in this current market,” he told the Reuters Global Real Estate Summit in New York in reference to the Equity Office takeover and a $15 billion deal for residential real estate firm Archstone-Smith. Dyer said that lenders were being more cautious and that the opportunities to flip, or onsell, properties quickly had diminished. That doesn’t mean there is a drop in the demand for real estate – Dyer said he sees volumes of transactions remaining strong — but that the large aggressive deals won’t get the financing nearly as easily as in the recent past.