- CCP Commercial Office Digest
- Posts
- CCP Commercial Office Digest
Commercial Office Digest
Callahan Capital Partners is a real estate private equity firm focused exclusively on the origination, acquisition and management of high quality office assets throughout the United States.
Here's a glimpse into what we are reading to shape our view on the evolving office market.
“Capital markets is painting a very broad brush against the office sector in totality. We don’t think that that broad brush really makes sense when you look at really how bifurcated the market is in terms of fundamentals.”
David Steinbach, Global Chief Investment Officer for Hines, discusses the performance difference between “high quality” and “commodity” office (~3 minutes in). Watch here.
“What we are seeing is this dance between lenders and owners… No one knows what the right value is. No one wants to take a building back.”
The New York Times covers the standoff between lenders and owners at a time when many maturities are coming due and refinancing options are slim. Read more here.
“We’re starting to see a thaw and more product coming to the market.”
Some of New York’s best known real-estate developers are unloading their least viable office buildings at deep discounts, cracking open a sales market that had all but closed in the first quarter. Read more from the WSJ here.
Charts We are Talking About
CBRE’s Occupier Sentiment Survey indicated a flight to quality, with 32% of respondents executing a “relocation to higher quality space” strategy, and an additional 25% exploring that strategy.
Feel free to share this newsletter. New subscribers can sign up HERE to be included on future Digest editions.
Questions? Thoughts? Want to connect? Please reach out to [email protected]