Distressed Office Buildings

Record numbers of employees are working from home. Office building tenants are giving back space. Interest rates and operating costs are soaring. Capital is constrained, and nearly a trillion dollars in commercial real estate and multifamily property debt is due to mature before the end of 2024.

It is a perfect storm for those with investments in office property—and one we are uniquely positioned to help clients navigate.

Our cross-disciplinary Distressed Office Buildings team brings together real estate, finance, leasing, zoning, construction, condominium, enforcement, bankruptcy, and tax lawyers with the experience and strategic thinking needed to analyze the most complex and demanding of situations and structures. We are helping clients across the country to protect their interests, and to develop and implement clear and effective resolution plans.


  • Represented many of the largest lenders, special servicers, and bond trustees in the workout, enforcement, and resolution of a wide range of loans and projects having an aggregate value well in excess of $10 billion, including various office and mixed-use projects, involving a variety of restructuring and enforcement strategies.
  • Represented the trustee for large institutional investment funds as certificate holders in multiple lawsuits arising out of several credit-tenant leases involving a 19-story office building in the heart of downtown San Diego. The lending exposure was in excess of $130 million. The Ballard team prevailed on summary judgment in one of two related lawsuits, and resolved the second lawsuit, resulting in 100 percent of the principal loan balance ($130 million) being returned to the lender group, including default interest, as well as a 100‑percent recoupment of fees and costs.
  • Represented a lender in the workout of two cross-collateralized loans having an aggregate principal balance of $143.5 million. The transaction involved the lender obtaining title to the properties, entering into new leases and extending existing leases, and ultimately selling the properties to third-party purchasers.
  • Represented a large national real estate developer in the workout and restructuring of $450 million in CMBS financing secured by a multiphase, special-use property consisting of over 5 million square feet.

Featured Services and Resources

The Sky Is Not Falling: Hope for Distressed Office Buildings, Despite Economic Challenges


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Distressed Office Buildings: Considerations and Strategies


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