Real Estate Dealmaking Revival at Blackstone

Dealmaking Activity Picking Up

After a prolonged market slowdown, real estate dealmaking is gaining traction, according to Blackstone executives. Bisnow reports that easing financing conditions and gradually recovering asset values are reviving transaction volumes across commercial real estate, ending a two-year lull marked by limited activity and pressured valuations.

Blackstone President Jonathan Gray cited exposure to data centers and real estate credit as ongoing strengths for the firm, noting optimism about the sector’s prospects. Blackstone has nearly $200B in dry powder to target new opportunities.

Key Transactions and Financial Performance

Blackstone was the largest seller of both industrial and multifamily properties in the US last year, offloading $4.6B in industrial and $3.1B in apartments. Despite a tough environment, the company delivered $2.2B in distributable earnings for Q4 and grew assets under management to $1.3T by year-end 2025.

Executives said improved valuations—though still lagging the broader stock market—are paving the way for more acquisitions, especially in logistics and multifamily. The sharp decline in new construction starts for these property types is expected to support further market recovery. Recent signs of increased activity among regional lenders have also helped ease capital constraints, adding momentum to the broader rebound in dealmaking.

Focus on Data Centers and AI Infrastructure

Artificial intelligence is a key investment theme for Blackstone, with the firm planning to expand its capital deployment into data centers and related infrastructure. Recent investments include potential new backing for an Oracle data center project in Michigan, with both debt and equity options under consideration.

Firm leadership views the US focus on AI, semiconductors, and data infrastructure as critical drivers of future growth and transaction volume in real estate. As the recovery continues, Blackstone aims to be an active participant in the next wave of real estate dealmaking.