I recently met with a foreign manager who told me of hundreds of billions in losses last year from the performance bond alone. This is because the interest rate hikes led to rapid price adjustments in the commercial real estate market, in the process shocking both buyers and sellers, leading to transactions falling apart entirely. The if the performance bond is gone, it’s better to wait for prices to drop than to buy at an expensive price. So this has led to something called ‘price discovery’ across the global commercial real estate market. Market uncertainty has persisted, and both parties involved in transactions have profound concerns about what appropriate pricing […]