During the state of the market panel at the recent GlobeSt. net lease national fall event, panelists agreed that we are in a period of price discovery. "We are bullish on retail but we have a pricing disconnect we have to work through," explained panelist Will Pike, vice chairman and managing director of CBRE. "There is a lot of price discovery. I think we are in the second or third inning of that." According to Pike, "we have to see what happens with the Fed during the next meeting." He added that the primary groups are willing to transact in the market if they have a specific reason to sell or if they have debt coming due.
Gino Sabatini, managing director and head of investments at W. P. Carey, agreed, noting that while not currently doing deals, they are not pens down at W.P. Carey. "We are in a period of price discovery and eventually there are going to be people who have to do something and they will move the market."
He explained that sellers still want yesterday's pricing so there is a disconnect. "If you can't borrow below 6% I don't know how you are going to do a 6% cap rate."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
