One of the most defining trends in today’s market is the clear separation between high-quality assets and everything else.
- Class A (trophy assets) in major markets are:
- Commanding premium rents
- Attracting strong tenant demand
- Maintaining long-term value
- Class B and C office buildings, however, are:
- Facing elevated vacancy
- Trading at steep discounts
- Often requiring repositioning or redevelopment
This “flight to quality” has created a unique window where underperforming assets can be acquired at significant discounts and repositioned for higher-value uses.