Many office tenants and landlords are in – or are entering – precarious positions given today's economic situation.
A recent report from Savills said the combination of the precipitous drop in income received, higher interest rates, and consequential decreased valuation, limit an owner's ability to refinance its debt obligation.
It also is placing the banks in a position where they may elect not to recapture the troubled asset due to the negative stigma it carries which in turn may affect its ability to lease the asset in the future.
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