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.
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