Rising Borrowing Costs are Pushing Commercial Buyers and Sellers Apart

Economic uncertainty and elevated borrowing costs are pushing buyers and sellers further apart when it comes to pricing commercial properties up to $15 million. Deals are also taking longer to close.

The imbalance in expectations on values has grown with each new bump in the federal funds borrowing rate over the past year, a CoStar News analysis of comparable sales shows.

When looking at bid-ask data, a negative price differential indicates the discount a buyer paid to the seller’s original asking price. When that percentage slides deeper into negative territory, it signals more of a buyer’s market.

*Article courtesy of Costar

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