The chasm between commercial property buyers and sellers widened in the third quarter due to the Coronavirus pandemic, putting a strain on sales. However, when it came to cap rates, investors found stability, according to a new survey from CBRE.

While 61% of buyers expected discounts from pre-pandemic prices, just 9% of sellers were willing to offer such price breaks, the research said. Further, revised criteria for purchasers are emerging. Investors are placing greater importance on tenant credit quality, which was cited by 85% of respondents, and both length of remaining lease term and building occupancy—which each came in at 64% of respondents—than they did prior to the pandemic.

"Buyers and sellers remain apart on many asset types, especially value-add where the bid-ask spread remains wide," said Chris Ludeman, global president of capital markets. "Uncertainty about how to underwrite net operating income will remain until the pandemic is under control. Cap rates have remained relatively stable and in fact have gone down for the best industrial and multifamily assets. There is no shortage of equity capital, both foreign and domestic, targeting real estate and debt markets are increasingly accommodative."