Real estate investors active in the office real estate market globally were mostly looking for small and mid-discounts up to 30 percent when it comes to value add assets, according to a survey conducted in early 2022. Nevertheless, about 14 percent of investors were willing to bid above asking price for value add assets. In value-add office investments, the investor plans to perform improvements and increase the value of the asset. These investments also tend to have a lower occupancy rate and are considered riskier, with the potential for higher returns. In stabilized investments, on the other hand, occupancy is high and no extensive capital expenditures are needed to make the property attractive.
Pricing strategies in class A office real estate investment worldwide in 2022
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Stabilized
Value add
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Statista. (December 5, 2022). Pricing strategies in class A office real estate investment worldwide in 2022 [Graph]. In Statista. Retrieved September 01, 2024, from https://www.statista.com/statistics/1289056/office-real-estate-pricing-strategies/
Statista. "Pricing strategies in class A office real estate investment worldwide in 2022." Chart. December 5, 2022. Statista. Accessed September 01, 2024. https://www.statista.com/statistics/1289056/office-real-estate-pricing-strategies/
Statista. (2022). Pricing strategies in class A office real estate investment worldwide in 2022. Statista. Statista Inc.. Accessed: September 01, 2024. https://www.statista.com/statistics/1289056/office-real-estate-pricing-strategies/
Statista. "Pricing Strategies in Class A Office Real Estate Investment Worldwide in 2022." Statista, Statista Inc., 5 Dec 2022, https://www.statista.com/statistics/1289056/office-real-estate-pricing-strategies/
Statista, Pricing strategies in class A office real estate investment worldwide in 2022 Statista, https://www.statista.com/statistics/1289056/office-real-estate-pricing-strategies/ (last visited September 01, 2024)
Pricing strategies in class A office real estate investment worldwide in 2022 [Graph], Statista, December 5, 2022. [Online]. Available: https://www.statista.com/statistics/1289056/office-real-estate-pricing-strategies/