{"id":2204,"date":"2020-10-12T00:30:31","date_gmt":"2020-10-12T00:30:31","guid":{"rendered":"https:\/\/businessner.com\/?p=2204"},"modified":"2022-03-25T10:10:10","modified_gmt":"2022-03-25T10:10:10","slug":"us-real-estate-buyers-and-sellers-have-wide-disconnect-on-pricing-expectations","status":"publish","type":"post","link":"https:\/\/businessner.com\/us-real-estate-buyers-and-sellers-have-wide-disconnect-on-pricing-expectations\/","title":{"rendered":"US Real Estate Buyers and Sellers have Wide Disconnect on Pricing"},"content":{"rendered":"
While many commercial real estate buyers in the US are hunting for huge discounts from sellers during the coronavirus pandemic only a few sellers are willing to drop prices of their properties.<\/p>\n
A recent study conducted by CBRE, the world\u2019s largest commercial real estate services, and investment firm, showed a wide disconnect on pricing expectations between buyers and sellers as a consequence the COVID-19 pandemic which has heavily affected commercial real estate investment.<\/p>\n
The recent CBRE survey<\/a> found that 61% of buyers are looking for discounts from pre-pandemic prices and only 9% of sellers are willing to offer such discounts.<\/p>\n Among real estate buyers looking for discounts, nearly three-quarters were for office or retail properties. For suburban offices, 95% of investors were looking for discounts, with no sellers willing to reduce their price.<\/p>\n \u201cBuyers and sellers remain apart on many asset types, especially value-add where the bid-ask spread remains wide. Uncertainty about how to underwrite net operating income will remain until the pandemic is under control,\u201d said Chris Ludeman, Global President of Capital Markets for CBRE.<\/p><\/blockquote>\n<\/blockquote>\n\n