The Office Bust Is Shifting From Empty Towers to Investor Losses
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: $9.6B across 46 reported transactions. All Office coverage →
Computed from Real Estate Trail’s own tracked coverage
External link. Real Estate Trail does not republish source content.
Related coverage — Office
News | New York office tower joins amenity race with major overhaul
Denver office tower once eyed for conversion hits auction block
Lee & Associates Negotiates Land Sale for Planned Industrial Development
Lee & Associates has closed a $4.5 million sale transaction for four acres located at 11330 W. Melrose Avenue in Franklin Park, Illinois. Jeff Provenza, principal at Lee & Associates’ Illinois office, represented the…
Office tower once eyed for residential conversion heads to auction with $750K starting bid
Two AI Companies Ink Full-Floor Deals at 61 West 23rd Street
Artificial intelligence firms Normal Computing and Inspiren have inked full-floor office leases at 61 West 23rd Street in Manhattan’s Flatiron District. The two deals total 16,734 square feet at the Zegna family- and…
JLL Arranges Sale, Acquisition Financing of Northern Virginia Office Portfolio
JLL has completed the sale of 1676 International Drive and 8260 Greensboro Drive, a 466,230-square-foot office portfolio in Tysons, Virginia. JLL represented the seller in the sale of the property to Cummings Capital…