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Connect CRE · Office

MOB Investors Favor Income as Capital Markets Regain Momentum

Via Connect CRE · August 27, 2026
Compiled by Real Estate Trail Editorial · August 27, 2026

Why this matters

Office continues to trade in two distinct markets: trophy assets in walkable submarkets that are leasing at or near record rents, and commodity Class B and C buildings where the basis is still resetting. Underwriting on the latter has moved toward replacement-cost-minus, with credit underwriting now leaning on tenant covenant and remaining lease term rather than mark-to-market expectations. For LP-positioned capital, the read-through is that the bifurcation is now a structural feature of the sector, not a cycle to wait out.

Editorial analysis · Real Estate Trail Editorial

On the RET wire

  • Disclosed office deal value tracked in August 2026: $16.9B across 64 reported transactions. All Office coverage

Computed from Real Estate Trail’s own tracked coverage

Excerpt from Connect CRE:
The medical office building sector entered 2026 with growing momentum, supported by improving capital markets, greater lender appetite and resilient fundamentals. Cushman & Wakefield’s MOB Capital Markets Mid-Year 202…
Read the full article at Connect CRE

External link. Real Estate Trail does not republish source content.

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