Are CRE Prices Still Too High
WHY SOME INVESTORS ARE ON THE SIDELINES WHILE OTHERS SEE OPPORTUNITY
Expectation Gap Shrinking But Still A Factor
In general, buyer sentiment is that CRE pricing is still too high in the summer of 2023
Sellers that need to act are moving to the market pricing to secure deals
Significant Number Of Deals Are Penciling Despite Gap
Nearly 30,000 CRE transactions occurred in the first half of 2023, highlighting solid liquidity during the slowdown
Smaller deals involving private investors have made up a higher percentage of first half deals in 2023
What Opportunity Are Buyers Seeing?
Investors are tracking demographic trends, and some are determining the future gains outweigh the short-term rise in financing costs
Today’s climate reinforces the importance of analyzing property and market trends when making decisions
*Through 2Q
Sources: Marcus & Millichap Research Services, Real Capital Analytics, CoStar Group, Inc.
