{"id":1004809107,"date":"2026-08-19T08:52:07","date_gmt":"2026-08-19T16:52:07","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004809107"},"modified":"2026-08-19T10:37:51","modified_gmt":"2026-08-19T18:37:51","slug":"as-capital-returns-which-office-deals-get-done","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/as-capital-returns-which-office-deals-get-done\/","title":{"rendered":"As Capital Returns, Which Office Deals Will Get Done?"},"content":{"rendered":"
\n
\"\"
Joel Heikenfeld and Charlie Rimkus<\/figcaption><\/figure><\/div>\n\n\n

When an office property lacks the capital to compete for tenants, it can become a melting ice cube. As leases expire without replacement, WALT drops, income falls and negotiating leverage weakens, and all parties in the capital stack are in a worse position. The longer the parties wait for yesterday\u2019s value to return, the less remains to protect.<\/p>\n\n\n\n

Capital has begun returning to the office market during the past 12 to 18 months. Lenders are selectively pursuing new acquisitions and recapitalizations, while equity investors have moved from broadly avoiding office to evaluating opportunities on a situational basis. The deals closing today provide a clearer picture of what earns conviction.<\/p>\n\n\n\n

A workable basis creates room to sign accretive leases, improve the building and fund tenant improvements and leasing commissions. Investors then test whether the apparent discount will survive the full capital plan. Tenant improvements, leasing commissions and building upgrades can quickly consume the basis advantage if those costs were not reflected in the purchase price.<\/p>\n\n\n\n

\n
\n
\n
\"\"<\/figure>\n<\/div><\/div>\n\n\n\n
\n

CPE Capital Markets Newsletter<\/h2>\n\n\n\n

Executive Editor Therese Fitzgerald delivers the capital markets intel that moves the needle.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n

\n \n \n \n \n \n\n