IS NOW A GOOD TIME TO SELL REAL ESTATE?

Investors are Getting Back In the Game

• As uncertainty abates, investors with large capital reserves are increasingly looking to buy properties
• Tremendous market liquidity and still-low interest rates further fuel aggressive bid activity, boosting prices
• Rising prices are putting downward pressure on cap rates

Interest Rate and Tax Policy Uncertainty Raise Questions

• Higher prices create concerns around inflation and rising interest rates; would tighten yield spreads
• Proposed capital gains tax changes could further offset potential property value gains

Is Now the Best Time to Sell Commercial Real Estate?

• Investors considering the sale of a property in the next few years should explore the opportunities allotted today
• While pricing pressure is strong, rising interest rates and prospective tax changes could eat away at future gains
• Investors can capitalize on the current market to cash out or exchange into a new market or property type

* Through June 09, 2021
Includes apartment, retail, office, and industrial sales $1 million and greater
Sources: Marcus & Millichap Research Services, CoStar Group, Inc., Real Capital Analytics, Federal Reserve

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