Commercial property prices that have been hovering at near peak levels are starting to slide lower, and with more interest rate hikes looming, it could turn out to be a slippery slope for some sellers.
“The higher cost of capital is resulting in a repricing of risk across the broader economy, and real estate assets are squarely in the middle of that,” says Bryan Koop, a vice president on the Boston Capital Markets team at Colliers International. “Asset values have already taken a hit with the cost of capital increases.”