10Y UST4.79%+0.84%30Y MTG6.66%+0.15%SOFR3.66%-0.54%VNQ$95.78-0.54%XLRE$43.73-0.70%FED FUNDS3.63%
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Prop News Time · Office

Office leasing enters cautious phase as firms reassess expansion plans

Via Prop News Time · September 2, 2026
Compiled by Real Estate Trail Editorial · September 2, 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 September 2026: $743.2M across 7 reported transactions. All Office coverage

Computed from Real Estate Trail’s own tracked coverage

Read the full article at Prop News Time

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