Office Building Owners Might Finally Be Accepting Lower Prices

The office market may finally be entering the phase many have been waiting for, but few owners wanted to face. Some office buildings are trading at discounts of up to 90 percent from their prior valuations, a level of price discovery that signals something more than distress. It suggests capitulation. After years of holding out for a recovery that has yet to fully materialize, some owners are beginning to accept that the value of their assets has fundamentally changed.

These transactions are no longer isolated. In cities like San Francisco, Los Angeles, and Washington, D.C., office towers have been sold at steep losses compared to their pre-2020 pricing...   ...more

RSK: Office prices finding their bottom number.