As investors pulled out of the market sellers have been left holding the bag on NNN leases and other retail developments that had previously been selling in the 5-6% cap range.
Now sellers are readjusting listed sales prices across the country as the amount of investors may have not changed but the interest has waned. Now clients are asking to find what is available in an 8% range and are unwilling to consider those deals below the 7% range.
Obviously multifamily rates are often lower and many are speculating that due to the gap in housing versus rent costs that profits will rise on multifamily properties in the next few years. This rise will create a greater cap rate than the current rate and has investors willing to gamble on the upside.
Educating your buyers and sellers in this market is even more important....some sellers are still holding out for their dream sale and those properties should not be used in comps as I've seen some agents doing in the past. Please only use previously sold properties as comparables!!! Let's put the deals together instead of keeping them apart!!!