The office market may have hit its bottom following a series of stressed property sales at discounted rates during the past quarter, which have set a new pricing benchmark, according to a Reuters report.
Seven properties sold at a discount of more than $100 million during the first quarter, compared with two during all of 2023. These include the sale of a Midtown Manhattan office building that went for a 97% discount of its original price, accounting for a $276.5 million loss, according to Moody's data.
According to the RCA Commercial Property Price Index, office prices have fallen 12.4% year-over-year. This trend has industry observers speculating that the worst of office distress may be behind us. An increase in transaction volume would confirm the industry's comfort level with current pricing.
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