Distressed Office Buildings Q&A with Alicia Clark
Mile-High CRE spoke to Alicia B. Clark about the state of the Denver and national office markets and how they may fare in the near future as rising operating costs, tightening credit, and tepid tenant demand place strains on the office building business model.
"I don’t think anyone can say for sure, but it certainly looks like the challenges office building owners are facing will result in depressed property values, continued softening of tenant demand and defaulted loans," she said. "In addition, the development pipeline for office buildings may slow in the coming few years. One thing that has become clear is that flight-to-quality is still a prevalent trend in this market, which means that newer and amenity-rich office buildings will be in the best position to weather market troubles, with older and outdated office buildings bearing the brunt of a downturn."
Ms. Clark co-leads the firm's Distressed Office Buildings team.
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