US Office Market Shows Bottoming Signs, Moody’s Analytics Says
- Sellers are finally capitulating, volumes have steadied
- Recent deals have brought much more price clarity: report
Office property values have slumped in the wake of the onset of the Covid-19 pandemic and subsequent drop in usage.
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A years-long price decline for US offices could soon be ending as sales volume has stopped falling and large properties are being resold well below prior deal values, according to Moody’s Analytics.
“We are seeing signs that the market is beginning to function in a healthier way,” the firm said in a report dated Thursday. “A significant increase in price discovery paired with reaching a bottom in transaction volume means we could be nearing a bottom in office pricing.”