Even as the pandemic stretches into its tenth month, there is still a significant spread in price expectations between buyer and seller—a spread fueled by differences of opinion about future rents, occupancies, business prospects and ultimately, expectations of net cash flow going forward, according to a report by Moody's Analytics and CWCapital.  Right now, owners are valuing properties on pre-COVID performance, while opportunistic buyers are looking at the new reality. 

Others agree. "The sentiment is that sellers are still looking at values in a rearview mirror, and buyers are looking at values on a going-forward basis," Pat Jackson, CEO and founder of Sabal Capital Partners, told GlobeSt.com in an earlier interview. "Until you get that kind of acceptance that sellers need to get rid of assets and it is what it is, trades won't start happening. 

Eventually, poor performance will cause increases in cap rates. Moody's Analytics REIS predicts that a rise in cap rates will prompt a decline in value ranging anywhere from 7% to 9% in multifamily and industrial to 20% or more for office, retail and hotel.