Part of our thesis regarding the current state of the investment market reflects how operators unable to refinance under the new conditions may be forced to sell their properties, increasing the supply of properties on the market and potentially driving down prices.

• Forced sales increasing market supply, potentially driving down prices.
• Market adjustments creating discounted acquisition opportunities.
• Declining property prices favorable for well-capitalized investors.

A recent WSJ article seems to support the perspective by highlighting the surge in forced sales of distressed commercial properties, driven by operators’ inability to refinance under current conditions. This increase in property seizures is adding to the market supply, which can drive down prices. The ongoing market adjustments are creating opportunities for discounted acquisitions, particularly benefiting well-capitalized investors.