Office owners across the country are selling distressed properties at significantly reduced prices as vacancies rise and rent growth remains depressed. Some properties are trading at up to 80% below previous valuations. The volume of sales and listings for office properties has increased, with sellers accepting an average discount of 31% below their initial expectations. As billions of dollars of office-backed mortgages come due, the trend of selling at lower prices is expected to continue. However, some see this as an opportunity, as funds targeting distressed office assets have emerged, and lower prices could foster competition and affordability.
