Why are commercial real estate deals falling apart even when buyers are actively looking and sellers are ready to sell?
One of the biggest challenges in commercial real estate is the growing disconnect between what property owners believe their buildings are worth and what buyers are willing to pay. Sellers often rely on historical valuations and previous market conditions, while buyers evaluate properties based on current interest rates, financing costs, and investment returns.
This difference, known as the commercial real estate bid-ask gap, can make it difficult for buyers and sellers to agree on a price, slowing transaction activity and creating challenges for property owners looking to sell.
In this episode, Aviva Sonenreich and James Milner, CCIM, President and Owner of Appalachian Commercial Real Estate, discuss the commercial real estate bid-ask gap, why buyers and sellers struggle to agree on property values, and how changing market conditions influence commercial real estate transactions.
James explains why historical sales data and older commercial property appraisals may not reflect current buyer expectations. He also discusses how rising borrowing costs, limited access to capital, and declining transaction volume can widen the gap between asking prices and offers.
Aviva shares similar challenges in the Denver industrial real estate market, including conversations with property owners whose pricing expectations no longer align with what buyers are willing to pay.
Together, they explore the difference between appraised value and actual market pricing, why commercial property owners may need to reconsider their asking prices, and how brokers can use current market data to help clients make informed decisions.
They also discuss the importance of accurate property research, including how county assessor records, public sales data, and commercial real estate analytics can help brokers evaluate market conditions and support pricing recommendations.
For commercial real estate investors, property owners, buyers, sellers, and brokers, this conversation provides a practical look at why commercial real estate transactions stall and how understanding the bid-ask gap can help both sides navigate pricing negotiations.
Key Topics Discussed
- What the commercial real estate bid-ask gap is and why it matters
- Why commercial real estate buyers and sellers struggle to agree on pricing
- How seller expectations can differ from current market conditions
- Why commercial real estate transactions slow when the bid-ask gap widens
- The difference between commercial property appraised value and actual sale price
- Why older commercial real estate appraisals may not reflect current market pricing
- How the effective date of an appraisal influences its relevance
- Why historical sales comparables may not accurately represent current buyer demand
- How brokers use market data to develop commercial property pricing recommendations
- Understanding buyer expectations and negotiating leverage in a changing market
- Why some commercial property owners may need to adjust asking prices
- How pricing decisions affect a property’s ability to attract qualified buyers
- Using county assessor records and public sales data to research commercial properties
About the Guest
James Milner, CCIM, is the President and Owner of Appalachian Commercial Real Estate in North Carolina. As a commercial real estate broker and appraiser, James advises investors, business owners, and property owners on acquisitions, dispositions, valuations, and investment strategy. He is known for his client-focused approach, market expertise, and ability to navigate complex transactions. Beyond his brokerage work, James is an active leader within the CCIM Institute and a recognized advocate for helping real estate professionals leverage social media, digital marketing, and technology to grow their businesses.
About the Host
Aviva Sonenreich is the Managing Broker and Owner of the Warehouse Hotline, a Denver commercial real estate brokerage specializing exclusively in industrial properties. She leads the firm’s brokerage operations, negotiates industrial sales and leasing transactions, advises clients on acquisition and disposition strategies, and oversees the company’s marketing and business development efforts. Through Commercial Real Estate Secrets, she interviews leading investors, brokers, developers, and industry experts to provide actionable insights on commercial real estate investing, brokerage, leasing, development, and market trends.
What Is Your Commercial Property Worth in Today’s Market?
An appraisal from two years ago doesn’t necessarily reflect what a buyer is willing to pay today.
Interest rates, financing conditions, comparable sales, tenant demand, and investor expectations all influence commercial real estate valuations. When market conditions change, relying on outdated property values can lead to unrealistic asking prices, prolonged marketing periods, and missed opportunities.
The Warehouse Hotline helps industrial property owners throughout the Denver metro area understand their property’s current market value through broker opinions of value, comparable sales analysis, and specialized knowledge of Colorado’s industrial real estate market.
Whether you own a warehouse, distribution facility, flex property, or industrial outdoor storage property, our team evaluates the factors that influence market pricing, including location, building characteristics, lease terms, tenant occupancy, and recent transaction activity.
If you’re considering selling, refinancing, or simply evaluating your investment, understanding your property’s current market position is an important first step.
Find out what your industrial property could be worth in today’s market.
