After Slowdown in Property Sales, ‘Repricing’ Becomes This Summer’s Dreaded Word
Rising Interest Rates, Other Economic Challenges Plague Commercial Real Estate Nationally
Summer lulls are nothing new in commercial real estate, but this year’s slowdown in deals is more pronounced because of one word that has defined the season: repricing.
Rising interest rates, inflation and worries of a recession have caused a reset on prices, prompting sellers to accept a less satisfying price or pull properties from the market in hopes of a better offer later.
The result has been a drop in deals this spring and summer, with no clear timeline for when the market will recover.
“The lender pool isn’t as deep, the buyer pool isn’t as deep and everyone’s being cautious about making a move,” said Jim Postweiler, a Newmark broker who sells office buildings in the Chicago area and throughout the Midwest.
