Summer time lulls are nothing new in industrial actual property, however this yr’s slowdown in offers is extra pronounced due to one phrase that has outlined the season: repricing.
Rising rates of interest, inflation and worries of a recession have brought on a reset on costs, prompting sellers to just accept a much less satisfying value or pull properties from the market in hopes of a greater supply later.
The consequence has been a drop in offers this spring and summer season, with no clear timeline for when the market will get better.
“The lender pool isn’t as deep, the customer pool isn’t as deep and everybody’s being cautious about making a transfer,” stated Jim Postweiler, a Newmark dealer who sells workplace buildings within the Chicago space and all through the Midwest.
Learn the complete article at HotelNewsNow (a part of CoStar)
