SPONSORED: Barings Real Estate — Where office values are headed 

How do investors appraise their exposure to private real estate, especially office, when there is a disparity between book value and actual transactional value, amid a slow return to the office by workers. “There is a strong case to be made that appraised values for institutionally owned commercial offices are not accounting for the challenges facing office landlords — including the increase in both remote work and interest rates,” explains Dags Chen, head of U.S. real estate research and strategy for Barings Real Estate, in a report titled, “A reckoning for office owners.” Published in the April issue of Institutional Real Estate Americas, the report explains the office market has divided into “haves” and “have nots,” with the former being greener assets with flexible floorplans, amenities and spaces for collaboration. Meanwhile, conventional office product will be less able to attract tenants or deliver for investors.

To access a pdf of the inter