In this article, you'll discover:

• Office property values have significantly decreased, with an 11.1% drop in prices per square foot as of Q3 2023.
• Distressed property sales remain uncommon due to lenders delaying crises through "extend and pretend" tactics.
• San Francisco's office market is particularly hard-hit, showing steep discounts on property sales.
• Some regions like the Sunbelt are seeing stable or increasing office property prices.

Office property values are dropping. Obvious and true, but just by how much are they dropping?
To begin the search for an answer, a logical place to start is the difference in sale price for properties now against past values. So, according to Morgan Stanley Capital International (MSCI), the average price per square foot on office sales occurring during the third quarter of 2023 dropped 11.1 percent to an average of $220 per square foot.