Many investors have held off on making any big buying decisions due to the changing market. This may present buying opportunities especially, with investors flush with cash. We should see more action with the institutions and real estate investment trusts picking up due to less competition from the private investors.
Look for good opportunities in some of the secondary smaller markets where cap rates are edging upward for Class B and C properties. It’s not uncommon to see cap rates rising 75- 125 basis points based on property type and class.
Source: Sperry Van Ness/RealSite Commercial Group