NewsFarrell Fritz Real Estate Partner Dave Curry recently spoke with Commercial Property Executive about the shifting office space market, emphasizing how the ‘return to the office’ is progressing slowly but steadily, with Class A properties backed by trusted landlords leading the way.
From the article:
The transaction proves that the lenders understand the underlying asset’s value, according to David Curry, Farrell Fritz, P.C.
He told CPE that the “return to the office” movement is happening slowly, and this type of Class A space “with world-renowned landlords such as SL Green” is leading the way.
“It is encouraging to see lenders making deals that make sense with borrowers who have shown them a history of living up to their promises,” Curry said. “Hopefully, deals such as this will encourage borrowers and lenders to return to the table to ink longer-term deals.”
He said the issue remains: What about the Class B and Class C office space?
“These owners—and the lenders that have provided financing to them—are in for a tougher road, as values have declined, and rates are at their highest in several years.”
According to Curry, these buildings need to be upgraded to include some of the features that Class A buildings have, making them more attractive, which further hinders sensible financing deals.
Read the full article on Commercial Property Executive here:
SL Green Secures $1.3B Mortgage Extension for NYC Tower – Commercial Property Executive