Brookfield Asset Management Ltd. is planning to execute US$20 billion in real estate transactions over a two-month period as the sector's recovery accelerates, with the beleaguered office segment poised for a rebound, according to its chief executive.
"What we're seeing on the ground is far ahead of what you're reading in the headlines," Connor Teskey, who became Brookfield's CEO in February, told analysts during a conference call on Friday. "In fact, we are seeing very significant increases in transaction activity, deal volumes, and recovery in valuations."
Teskey said the anticipated US$20 billion in asset deal flow will primarily involve non-office segments such as hospitality, logistics, and housing. However, he noted that office transactions are also expected to pick up momentum.
"The fundamentals for office are absolutely flying," Teskey said, attributing the strength to a lack of new construction since the pandemic lockdowns. "There was no new supply generated starting in 2020 because of the pandemic, and then following 2020 because of the rise of rates, and then following that because of work from home concerns."
He explained that demand recovery is now colliding with zero new supply, especially in tier-one markets, where rents are climbing sharply. In some cases, rents are 50% to 80% higher than five years ago. "If that continues, it's only logical that we're going to see the deal activity return to that sector as well," Teskey added.
Brookfield executives have been optimistic about an office recovery since last year, when Teskey's predecessor, Bruce Flatt, highlighted supply dynamics in New York and London that would drive a rebound over five years. "It's about supply, demand, interest rates, and financing, and it's all coming back," Flatt said in September.
During the call to discuss first-quarter financial results, Teskey also said Brookfield is poised to capitalize on "dislocation" in credit markets, partly through its credit franchise obtained via the full integration of Oaktree Capital Management. Last October, Brookfield announced a deal to buy the remaining 26% of Oaktree for US$3 billion. Oaktree, with US$209 billion in assets under management as of June 30, 2025, has credit as its "tentpole" business. Dislocations in segments like software could lead to the deployment of billions of dollars over the next couple of years, executives said.
