The struggling U.S. office property market may be bottoming out, Reuters reports.
Over the last quarter, there has been a string of sales of stressed properties with big discounts, helping to set a new pricing benchmark.
Prices for office buildings have dropped more than 12% year over year as of the second quarter, according to the RCA Commercial Property Price Index. This has caused speculation about when the market will reach a bottom.
Before COVID-19, office sales averaged $35 billion per quarter. As property valuations sunk on continued vacancies and high operating costs, they have averaged $13.4 billion per quarter since 2023, according to data from MSCI Real Capital Analytics.
However, analysts have seen signs of an increase in sales of struggling properties, which has led some to think a turning point in the market is coming.
