During the fall, many sources told GlobeSt.com that the general forecast for commercial real estate was uncertainty and more than the odd person or institution holding onto unrealistic expectations. As Barry Saywitz, president of national brokerage The Saywitz Company, said at the time: "You have a seller who wants yesterday's number, and you have a buyer who slings low-ball offers and sees who's desperate."

More than one person said that price discovery would be a crying need so landlords, operators, developers, and investors would have some realistic sense of what valuations and pricing should be.

A new report from Hines looked at, among other things, disparities between fundamentals and the bid-ask gap. Going into and continuing through much of 2022, buyers kept pumping capital into purchases, with lease trade-outs and the prospect of increasing rents providing the rationale for falling cap rates.

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.