Blackstone has continued to reduce its exposure to U.S. office assets, joining other large institutional landlords trimming positions in a sector facing structural headwinds.

Private capital, including family offices and ultra-high-net-worth investment vehicles, is increasingly active in buying discounted office and mixed-use assets in tier-one and tier-two markets.

Discounts to 2019 peaks remain wide in some submarkets, prompting selective bids on trophy buildings where long-leased tenancy can support a basis reset.

Underwriting now hinges on capex assumptions, tenant retention probabilities and the realistic timeline to stabilize rent rolls.