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.

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