A Major Silver Lining to Deep-Discounted Office Building Sales

There are a number of reports around the country that price discounts on office buildings are a boon to non-profits who have access to cash to acquire these office facilities for their own long-term use. Bisnow June 3, 2024 “With overall U.S. commercial real estate pricing down 21% from its March 2022 peak, according to Green Street, nonprofits are seizing the moment to buy property, largely at discounts from what their previous owners paid to acquire them.” In some regions the price discount can be as great at 50-75% of what the value of the property was just 4-5 years ago. Another value to non-profits is that as renters they may be paying their portion of the property taxes through full-service rents, while in many municipalities’ nonprofits aren’t charged for property taxes.  “Commercial property owners who sell to nonprofits also get a boost when the property trades at below market values: That delta between the fair market value and sale price can be written off as goodwill, experts say.”