The office sector continues to face difficulties, but there is a distinct separation in performance between the amenity-rich premier office assets and the older, lower-quality buildings where few employees have returned to the office, according to S&P Global Market Intelligence.
Low valuations across the office sector, coupled with high interest rates and lenders viewing the sector with greater trepidation, could lead to refinance challenges for landlords with mortgages coming due.
Office property transaction volume increased year-over-year in 2024, but remained low overall, making price discoverability challenging for the sector.
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