Summer time lulls are nothing new in business actual property, however this 12 months’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 triggered a reset on costs, prompting sellers to simply accept a much less satisfying value or pull properties from the market in hopes of a greater provide later.
The outcome has been a drop in offers this spring and summer time, with no clear timeline for when the market will get well.
“The lender pool isn’t as deep, the client 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.
