COVID-19 Driving Wider Price Disconnect Between Commercial Property Buyers and Sellers in U.S.


COVID-19 Driving Wider Price Disconnect Between Commercial Property Buyers and Sellers in U.S.


Investors Place Greater Importance on Tenant Quality, Lease Term than Pre-Pandemic

A new U.S. commercial property survey by CBRE finds a wide disconnect on pricing expectations between buyers and sellers as a consequence of the COVID-19 pandemic that is weighing on commercial investment activity.
 
The CBRE survey found that 61% of buyers are looking for discounts from pre-pandemic prices and only 9% of sellers willing to offer such discounts. Among buyers looking for discounts, nearly three-quarters were for office or retail properties. For suburban office, 95% of investors were looking for discounts, with no sellers willing to reduce their price....
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RSK:This is not just large office properties but on every level...the disconnect on what a seller feels the property is worth and what an investor senses because of the upped risk involved. No matter what, the market usually dictates what a property will sell for. Mark up is just that it is an asking price and what people are willing to pay will balance it out.

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- - Volume: 8 - WEEK: 43 Date: 10/20/2020 8:01:51 AM -