As the commercial real estate market continues to evolve, industry experts are keeping a close eye on upcoming trends. One of the most significant trends expected to shape the market in the coming years is the return of seller financing.
With banks and debt funds offering loans at high rates, sellers are turning to financing options to expedite transactions and maximize their profits. Buyers can expect to pay elevated prices for properties, but this trend could lead to quicker deal closings and higher returns for sellers.
Another trend that is starting to emerge is the increase in foreclosures. While the number of foreclosed properties is not yet significant, Miguel Pinto, CEO and Managing Broker of APEX Capital Realty, states, “We track the market closely and are starting to notice more and more properties going into foreclosures or pre-foreclosures. We think this is due to a combination of situations, including floating rates. DSCR deficiencies, and market-to-market write-downs.”
