A wave of multibillion-dollar corporate transactions, a historic leadership transition at Berkshire Hathaway, and sharp construction wage growth in Nevada marked some of the most significant economic developments closing out 2025, according to a CoStar News daily roundup.
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Global merger-and-acquisition activity surged to historic highs this year, with megadeals setting a new benchmark for transaction volume and value. Dealmakers announced 68 transactions valued at $10 billion or more worldwide in 2025, according to figures cited by The Wall Street Journal from analytics provider LSEG.
Easing tariff concerns and improved economic sentiment helped fuel the rebound, with momentum expected to carry into 2026. Among the year’s most notable deals was Union Pacific’s $72 billion agreement to acquire transportation company Norfolk Southern, finalized in July.
“Large deals are driving the market,” Ivan Farman, global co-head of M&A at Bank of America, told the outlet. “And when you see big deals, it’s a sign of CEO and boardroom confidence.”
Analysts say the surge reflects renewed optimism among corporate leaders, particularly in infrastructure, transportation and logistics sectors tied closely to long-term economic growth.
Another defining moment of 2025 came with the retirement of Warren Buffett, who stepped down Wednesday at age 95 after more than five decades leading Berkshire Hathaway.
Buffett, one of the most influential investors in modern history, joined Berkshire Hathaway in the mid-1960s and transformed the former textile manufacturer into a global conglomerate. The Omaha-based company has maintained a significant footprint in real estate, overseeing Berkshire Hathaway HomeServices, owning half of commercial brokerage Berkadia, and operating insurer GEICO, a major office occupier nationwide.
In his final companywide note before Thanksgiving, Buffett reflected on his career, writing, “I’m happy to say I feel better about the second half of my life than the first. My advice: Don’t beat yourself up over past mistakes — learn at least a little from them and move on. It is never too late to improve. Get the right heroes and copy them.”
Greg Abel, who has worked at Berkshire Hathaway for more than a decade, is set to officially succeed Buffett as CEO on New Year’s Day.
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On the labor front, Nevada led the nation in construction wage growth, posting a 10.6% year-over-year increase in average hourly earnings, according to a National Association of Home Builders analysis of recent government data.
Seven other states — Florida, Texas, Mississippi, Alaska, Colorado, South Carolina and Montana — also exceeded the national construction wage growth average of 3.6%, signaling continued labor tightness in key regional markets.
“While differences in regional hourly rates reflect variation in the cost of living across states among other things, the faster growing wages are more likely to indicate specific labor markets that are particularly tight,” wrote Natalia Siniavskaia, an NAHB assistant vice president, in a blog post.
By contrast, Oklahoma recorded the largest annual decline in construction wages at 3%, with smaller decreases reported in Louisiana, Missouri, Rhode Island, California and Wisconsin.
Data also showed that Alaska and Massachusetts remain the only states where average construction earnings exceed $50 per hour, while a dozen other states — including California, New York, Nevada and Washington — reported average rates above $40 an hour.
Together, the record-setting deal volume, a once-in-a-generation leadership transition at Berkshire Hathaway, and intensifying labor market pressures in construction underscore the shifting economic landscape heading into 2026. Analysts expect M&A activity, infrastructure investment and wage growth trends to remain key indicators shaping business and real estate markets in the year ahead.
Originally reported by Paul Owers, Rebecca San Juan in Costar.
