October 14, 2024

The outlook for office lending in 2025 is positive with meaningful improvements and increased liquidity. The market is starting to see some favorable trends in certain pockets relative to utilization, rents and vacancy. Watch for a flight to quality as lenders favor Class A office buildings. CMBS lenders will be active for well-performing office assets in strong markets. Banks will likely remain sidelined for the remainder of 2024 but will slowly and selectively re-enter the space in 2025 with building sales and loan sales starting to remove office loans from their balance sheets. More