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As rental performance and debt issues creep in we eventually see well-capitalized investors buying distressed assets at compressed values. While depressing, statistically and valuation wise, this actually helps free up tenant/landlord leasing activity as witnessed in Concord, CA recently. With a low cost-basis ($57 to ±$100/SF, for example), new owners/investors can not only do attractive lease transactions that create transactional activity for themselves, as well as enticing economics for office tenants, they can also justify deploying ample capital into the project to improve design, amenities, etc. for prospective tenants. It's important to note, and maybe further discussed in another post, but an environment of compressing rental rates, yet increasing operating expenses (have you seen your property insurance premiums lately... UGH!), and high construction costs, make transactions difficult for BOTH landlord and tenant.