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.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 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.