Marcus & Millichap Inc.
08/23/2024 | Press release | Archived content
Investors Seeking Office Bargains Are Finding Them
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Investors Seeking Office Bargains Are Finding Them
August 23, 2024
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In Atlanta, Cousins Properties and Town Lane bought a 526,000-square foot office tower in Atlanta's Midtown district for $83 million that had sold for $118 million in 2003.
The office sales market is starting to churn again. But, it's hardly a cause for celebration, given the prices that many properties are going for.
It's well known that, as office users implemented remote and hybrid work, many downsized their occupancies to reflect changing utilization. That's when vacancies shot up and incomes took a hit. Spiking interest rates have been a double whammy.
As a result, many buildings are selling at a sharp discount to previous trading prices and, in some cases, the remaining debt on the building.
Read the Full ArticleThe office sales market is starting to churn again. But, it's hardly a cause for celebration, given the prices that many properties are going for.
It's well known that, as office users implemented remote and hybrid work, many downsized their occupancies to reflect changing utilization. That's when vacancies shot up and incomes took a hit. Spiking interest rates have been a double whammy.
As a result, many buildings are selling at a sharp discount to previous trading prices and, in some cases, the remaining debt on the building.