The office sector is in an undeniably challenging position. But, just like retail properties adapted to meet extreme changes in its marketplace several years ago, so too will office, according to a new Q2 report from Marcus & Millichap.
Retail had its e-commerce crisis and office has its work-from-home and now its "debt obligations coming due" dilemma.
Office owners who took out debt five or seven years ago are now facing a much tighter lending environment, where costs of capital have gone up substantially, outpacing rental incomes.
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