Smaller commercial properties in secondary markets are still attracting buyers at good prices, but demand for big-market mega-properties appears to be easing, NAR second-quarter data suggest. Large markets saw a 5 percent annual decline in sales, while smaller markets saw a sales boost of 4 percent.
“Shrinking cap rates and the higher interest rate environment are expected to lead to a plateau in price growth over the next year, especially for Class A assets in large markets,” NAR Chief Economist Lawrence Yun says. “As a result, investors will continue to look to small and tertiary markets for properties that have the …read more
Source: Speaking of Real Estate