Will investment sales recover in 2023? Here's the outlook from Edge Capital Markets - Dallas Business Journal

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'Real estate is one big machine. You only make money if you are trading deals and buying assets, and lenders are going to have to get money out the door sooner rather than later.'

After a record-breaking year in 2021, investment sales transaction volume has dramatically slowed, with some estimating a 70% to 80% fall., managing principal of Dallas-based Edge Capital Markets.

"Real estate is one big machine. You only make money if you are trading deals and buying assets, and lenders are going to have to get money out the door sooner rather than later," said Stafford. Beeson and I wanted to start our own company. After talking with many groups, we decided creating another company under the Edge brand would be mutually beneficial, as it was less institutional and more boutique. We've succeeded because we have more inside access to how tenants are doing, which drives value. A client called us and told us to look at this deal and that their lease is up in a year – they are doing well, and there's no way they're leaving.

These deals aren't tied up in a bow and easy to sell, as untangling bad situations and bad partnerships can be difficult. The fundamentals are strong, especially here in DFW. You've got people pouring in and retailers generally doing well. I've talked with some title professionals, and they believe transaction volume is down 70% to 80%.In the last couple of months of last year, we saw almost every deal we had under-contract fall out of contract.

 

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