The Sky Is Not Falling: Hope for Distressed Office Buildings, Despite Economic Challenges
In markets across the country, downtown business districts have contracted, and office parks have grown quieter as employers embrace—or have come to accept—hybrid work environments and, in turn, tenants decide they need less space. The result is a glut of once-desired commercial office buildings facing converging negative market forces, including decreased tenant demand and falling market rents, higher interest rates and operating costs, pending loan maturities, and constrained capital.
Despite headlines portending doom—with creative thinking and proper forethought—both lenders and owners can find paths forward through this challenging environment.
Ballard Spahr’s Distressed Office Buildings Team is monitoring developments and assisting clients nationwide. In a recent webinar, Partners Alicia B. Clark, Ashley E. DeLuca, Dominic J. De Simone, and Jeffrey S. Page, discussed the key challenges faced by office building owners and lenders, as well as some of the creative strategies they can use to best weather the challenges the office building market is facing. Click the link below to download the white paper.