It’s Not Looking Great For (Most) Office Buildings

Major property owners have been walking away from prominent office buildings from coast to coast. Those owners have seen their revenue drop because of tenant departures and decisions not to renew leases. The income from the building can’t cover debt service.

The owners could choose to write checks from other sources to keep their loans current. But they don’t. In other words, the people who know the buildings best, the owners of those buildings, don’t see any good reason to throw more money into the buildings. They’re effectively announcing that the building isn’t worth more than its mortgage.