Pricing strategies in class A office real estate investment in the U.S. 2022

Real estate investors active in the the office real estate market in the United States were mostly looking for small and mid discounts up to 30 percent when it comes to value add assets, according to a survey conducted in early 2022. Nevertheless, about 6.1 percent of investors were willing to bid above asking price for value add assets. In value-add office investments, the investor plans to perform improvements and increase the value of the asset. These investments also tend to have a lower occupancy rate and are considered riskier, with the potential for higher returns. In stabilized investments, on the other hand, occupancy is high and no extensive capital expenditures are needed to make the property attractive.