By: Craig Franzen
The supply of investment opportunities will increase this year as owners who waited to put their properties on the market rush to take advantage of what feels like the market at its peak.
Owners who have been holding back putting their properties up for sale are now beginning to see a window of opportunity and will be enticed to sell in 2016.
With the added supply of product and projected rise in interest rates, this could have a negative impact and put downward pressure on pricing and transactions in 2016.
As we have seen over the last few years, multiple offers on properties will likely no longer be the norm and those sellers who do not appropriately price their assets or react quickly to what the market is offering, may find themselves having to adjust accordingly. Managing these sellers’ expectations will be the key to successfully closing transactions in 2016.
All this being said, it should still be a very transactional year. To quote Sam Zell,
“With pricing currently available in the commercial real estate market, it is very hard not to be a seller.”