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Sales of Large Office Properties Plunge to Lowest Level in More Than a Decade

Scarcity and Complexity of Securing Debt Financing Compresses Deal Flow

An affiliate of New York banking giant JPMorgan Chase bought the Pen Factory office complex in Santa Monica, California, for about $165.5 million public records show. The property was one of the few large office property sales to close so far this year. (CoStar)
An affiliate of New York banking giant JPMorgan Chase bought the Pen Factory office complex in Santa Monica, California, for about $165.5 million public records show. The property was one of the few large office property sales to close so far this year. (CoStar)

The office sector is reeling from unrelenting headwinds heading into the fourth quarter of 2023, including lingering occupancy challenges from COVID-19 lockdowns, soaring capital expenses and complications involving securing debt financing.

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