What We Learned About The Office Sector In 2023
Jonathan Adelsberg, co-chair of Herrick's Real Estate Department, spoke to Law360 Real Estate Authority about what 2023 meant for the office-leasing sector and how the Real Estate industry is managing the work-from-home affinity and the accompanying distress.
Jonathan said that for him, working in the office is a matter of recognizing the everyday importance of the industry he serves.
"If no one is using real estate, I don't have anything to do," Jonathan quipped. "It's very practical."
The article highlighted that in 2023, measures of office distress have risen throughout the year and that the market is locked in a stalemate. The article explained that borrowers face fewer financing sources and available financing is increasingly more expensive. Meanwhile, if they take control of the property after a foreclosure, lenders are confronted with the same market challenges as their borrowers.
Jonathan noted, "If the lender forecloses on the property, they are confronted with the same set of facts. What is the lender going to do? If you have a really reputable developer, does someone else have the secret sauce to address this?"
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