The Fed's most recent rate hike has widened the emerging "expectation gap" between buyers and sellers of commercial real estate, according to one industry watcher.
"Sellers tend to be slow to adapt to a cooling market," says Marcus & Millichap's John Chang in a new research video. "Many continue to shoot for top dollar when they sell, and often end up chasing market prices down. But buyers are completely changing their underwriting assumptions…as a result, the buyer-seller disconnect has widened and commercial real estate activity activity has begun to slow."
Motivated sellers should recalibrate pricing to meet the market, Chang says — and buyers should seize the opportunity to target strategic acquisitions to position for the next growth cycle.
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.
