Institutional capital may have stepped to the sidelines duringthe pandemic, but private capital groups are still actively buying.In many ways, it is open season for private buyers to capitalize ondiscounted pricing and a less competitive bidding environment.Kevin Shannon of Newmark KnightFrank has seen this trend unfold in recent months.
"Because private sales tend be between $5 million and $30million, it poses more of an opportunity for PCGs to partner withlocal banks, who are still active. Overall, sales velocity in thelast two months has slowed, which, in turn, limited the amount oftrade buyer activity," Shannon, co-head of U.S. capital markets atNewmark Knight Frank, tells GlobeSt.com.
So far, private capital hasn't been picky. Shannon has seendemand for office, multifamily, biotech, medical office andindustrial product since the onset of the pandemic. "Core retail,particularly when anchored by a major grocer, is also getting theattention of family office capital," he says.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.