Could we be reaching a pivot point? All indicators are pointing toward a bottom or close to a bottom for commercial real estate.
I was recently having a discussion with a few different investors about this topic. The mood has changed among my closest investor friends. They all believe that we are getting close to a bottom or might be there. One investor summed it up very clearly, "We are in a fog. We won't know when we are out of this fog until we are out of the fog."
With the renewed optimism that is starting to surface, the next question becomes are you ready to take advantage of the situation?
We have all heard about the opportunity funds with multi-millions of dollars sitting on the sidelines waiting to jump. The problem has been, they haven't jumped. Why? The bid-ask gap was too wide based upon sellers expectations (whether the seller was the private investor, the special servicer, or the bank) and buyers.
I am seeing the bid-ask gap narrowing. Transactions are starting to happen. Unfortunately, for the private investor that would like to sell in today's environment, this is not the time to sell. However, now is definitely the time to start buying!
What are you seeing in your market? I would like to know!