Office valuations and rents have been hit hard with changing conditions of work and how companies are being forced to manage their real estate. But what's happening with tech office use, particularly in the wake of the Biden administrations tech hubs strategy?

The general view across all office properties is tough. CRED iQ reviewed 190 appraisals of major properties across all asset classes in special servicing for the first half of 2023 to determine the impact of current market conditions on asset values. Office saw a collective valuation decline of 48.7%.

Moody's Analytics CRE found CMBS loan payoffs struggling. "The month of September saw ~$755mm CMBS office loans reach their fully extended maturity, the lowest number since April," they wrote. "The payoff rate of these maturities, while better than July and August, still came in at a paltry 11.1%. The YTD pay off rate fell slightly to 31.2%. Of the loans that have failed to pay off at maturity in 2023, half have managed to secure extensions from special servicers."