The voracious appetite American and global institutional investors have for stable Class A and value-add office buildings in the top 25 US markets is not only sharply escalating asking prices, it has pushed execution risk to higher levels for buyers, sellers and commercial real estate brokers alike.
Today, the availability and complexities of financing, traditionally the primary initial obstacle in securing a commitment for an asset sought by multiple bidders, is taking a backseat to a host of other priorities and considerations for the primary participants in the deal.
Specifically, what is the potential profitability, true quality, amenitization and environmental sustainability of the property? What is the certainty of close on the agreed upon date at the contracted price? Will the buyer demand an eleventh hour price reduction or a retrade.
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