Everyone keeps declaring office dead, but the lenders won't mark it, the owners won't sell at clearing prices, and the special servicers are playing for time. It's not a market, it's a standoff. How are you actually pricing class B office right now, or are you just not touching it?
Not touching class B at any price until the lenders actually mark it. Until then it's not a comp, it's a hostage situation with a cap rate attached.
"Hostage situation with a cap rate attached" — stealing this for the next IC meeting, full credit to you.
The standoff framing is exactly right. Nobody's a forced seller yet. The day the extend-and-pretend runs out is the day the real prices show up.
Cap rates tortured until they confess, exit assumptions that age like milk, and the hybrid worker who isn’t coming back.
＋ New threadMarkets, deals, and the group chat — for people who read the footnotes.