Disciplined Buyers - Summer 2018

With all the commercial real estate transactions occurring I occasionally hear concerns that the market is too exuberant, and that buyers are now paying too much for properties. At Harshman & Co., our thirty-plus years of experience working in this market tells us that is not the case at the present time. Although some buyers are paying premiums for highly desired locations, in almost every transaction we’ve investigated buyers knew what they were doing, had a solid plan for the property and were not highly leveraged. In many cases, buyers today are utilizing little or no debt and are paying cash for their investments. In less desired locations, buyers are walking away from deals that don’t seem to make sense or where sellers are seeking what is perceived as inflated prices. This discipline is good for our market.