Southern California’s Office Real Estate Faces Pricing Pressures Amidst Transition
Bill Kiefer, SIOR, Executive Managing Director of NAI Capital Commercial’s Ventura County office said, “Property buyers remain on the “sideline” hoping for a “better day” when values drop, possibly in 2024 or 2025.”
Bill Kiefer, SIOR
Executive Managing Director
NAI Capital Commercial
Given the poor pricing and higher borrowing costs tightening financial conditions, the slowdown in office sales highlights a crucial question: why sell an office property now? While an even lower number of properties sold or went back to the lender this year associated with distress, many sellers face pricing pressures. Bill added, “With the increased cost of capital, there are fewer buyers seeking properties, therefore less demand will lower prices.”
