The term "mind the gap" had its start in England as a reminder that subway patrons should step over the space between the train door and platform.

Today in commercial real estate, the gap is a bid-ask transaction one, where buyers and sellers are separated by a space between their respective valuations of a deal. Unfortunately, this price gap is having significant impacts on deal volumes, as MSCI noted in its Q2 2023 capital trends report.

Deal transaction volumes have been down significantly, with "potential buyers and current owners are still too far apart on price expectations for higher levels of deal volume to close across most property sectors." The observation is in keeping with what many in CRE have related as anecdotal to since September 2022.

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