How Will Buyers and Sellers Bridge the Current Pricing Gap? via National Real Estate Investor

The pricing gap that has emerged in the commercial real estate market is shouldering much of the blame for slowing transaction volume. How that gap is resolved—and how long it takes to narrow—is a top concern for investors still sitting on a lot of dry powder.

Investors still have a strong appetite for real estate, but still climbing property values are making them nervous about being able to execute on deals. A first half of 2017 survey of alternative asset investors by London-based research firm Preqin found that a majority of respondents, 72 percent, plan to increase or maintain commitments to private real estate funds over the next 12 months. However, 53 percent said it is now harder to source attractive investment opportunities, and 72 percent view pricing and valuation as the key issue facing the industry over the next 12 months.

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