Bottom line. Two fully leased properties, a shopping center and a state-agency office building, ask $264 to $284 a square foot at 7% to 8% cap rates. A one-third-leased 1985 office tower asks $65 a square foot, and a rural center that is 19% empty opens at auction at $12. Empty space is priced near zero because filling it is a second purchase: tenant build-outs, free rent and commissions can cost as much as the building. Distressed sales this year cleared at 29% of a 2019 price for Boston office and 53 cents on the loan dollar for a Providence mall.
1Four listings, as published
| Property | Sq ft | Leased | Asking | Per sq ft | NOI | Cap | Tenancy |
|---|---|---|---|---|---|---|---|
| Buckley Plaza, Hamilton, NJ (2004, renovated 2024) | 25,530 | 100% | $7,250,000 | $284 | $511,066 | 7.05% | Dunkin' to 2039, Kiddie Academy to 2046, triple net |
| 1163 S Broad St, Philadelphia (1925, renovated 2011) | 56,628 | 100% | $14,927,262 | $264 | $1,194,181 | 8.0% | State agency on 65% of the space to 2036; 8.6 years average term |
| Widewaters Commons, Waynesburg, PA (1989) | 78,400 | 81% | Auction Nov 16 to 18, opening bid $950,000 | $12 at the opening bid | Not shown | — | Tractor Supply anchor with three 5-year options; population falling 2.3% to 2030 |
| One Norwalk West, Norwalk, CT (1985 office, 7 floors) | 152,609 | 33% | $9,900,000 | $65 | Not shown | — | Floors 2 to 7 mostly available; assessed at $10.4M; sold for $16.5M in 2013 |
Sources 1 to 4. The two full properties' caps tie to their published NOI. The office asks less than its tax assessment, so expect an assessment appeal.
2The market in 2026
| Benchmark | Figure | Source |
|---|---|---|
| Office vacancy, Q2 2026 | 18.3% to 20.1% | CBRE and Cushman; Moody's put Q1 at a record 21.0% |
| Retail availability, Q2 2026 | 4.9% | CBRE; record-low new construction; small centers lost tenants to bank and boutique closures |
| Securitized loans behind, Sept 2026 | Office 12.2%, retail 6.6%, all 8.0% | Trepp; in August, 81% of new delinquencies were loans that matured and could not refinance |
| Loans maturing in 2026 | $875 billion | Mortgage Bankers Association; $652 billion in 2027 |
| Cost to fill office space, Manhattan trophy (late 2025) | $133 a sq ft build-out, 12.5 months free rent | Newmark; full build-outs $150 to $300 a sq ft |
| Office cap rates, suburban Chicago Class A | 10% to 12.5% | CBRE H1 2026 survey, as reported by CRE Daily |
Sources 5 to 9. Appraisers value distressed buildings two ways: "as is" at today's occupancy, and "upon stabilization" after a stated lease-up period. A buyer bids on the first and underwrites the cost of reaching the second.
3What distress cleared at
| Sale | Price | Per sq ft | Against | Discount |
|---|---|---|---|---|
| 18 Tremont St, Boston, office (June 2026) | $29.5M | $146 | $103M paid in 2019; assessed $49M | 71% below 2019 |
| Two office buildings, Brookfield, WI (sheriff's sale, July 2026) | $18.3M | $110 | A $28.9M loan in 2022 secured three buildings, two of which sold; bought by the lender | Below the loan; not directly comparable |
| Providence Place Mall, RI (receiver sale, Sept 2026) | $133.0M | — | $249.9M loan; $191M appraisal in 2024; $558M value at the 2011 loan | 47% below the loan |
Sources 10 to 12. Bid against the receiver's reserve and a liquidation value; the loan balance is history.
4How we would read the two distressed listings
| Property | Our read |
|---|---|
| One Norwalk West | About 100,000 sq ft is empty. Our assumptions: $75 a sq ft of build-out ($7.5M), 6 months of free rent at $24 a sq ft ($1.2M) and 5% commissions on 10-year leases at $24 ($1.2M). Filling it costs about $9.9M, the same as the ask. The price is for the 33% that pays rent plus the land. Value depends on a cheaper use for the upper floors or a tenant who needs a whole building. |
| Widewaters Commons | The value is one tenant's decision: Tractor Supply exercising three more 5-year options with 10% bumps. About 15,000 sq ft, 19% of the center, is empty, in a town whose population is falling; it may never fill. Bid the anchor's lease as a bond and the rest at land value; add the 3% auction fee. |
5Before you bid
- Estoppels and kick-outsConfirm every lease in writing; the Philadelphia listing's main tenant gave up a termination right, which changed the value.
- Lease-up budgetBuild-outs, free rent, commissions and downtime for every empty suite, at local market figures.
- The anchor's optionsTerm and options, rent bumps, co-tenancy clauses, and the anchor's own health.
- Loan statusMatured balloons drive most defaults; find out whether the seller's loan has already matured.
- Tax assessmentAn ask below assessed value means an appeal, and lower taxes, for the buyer.
- Exit buyerWho buys a one-third-leased 1985 tower from you, and at what cap.
Sources
- LoopNet, 621 US-130, Hamilton NJ: loopnet.com
- LoopNet, 1163-1165 S Broad St, Philadelphia: loopnet.com
- LoopNet, 55 Sugar Run Rd, Waynesburg PA (Ten-X auction): loopnet.com
- LoopNet, 40 Richards Ave, Norwalk CT: loopnet.com; 2013 sale, NEREJ
- CBRE Q2 2026 office market report: cbre.com; Cushman via IREI; Moody's via Bisnow
- CBRE Q2 2026 retail market report: cbre.com
- Trepp delinquency, Sept 2026, via YieldPro: yieldpro.com; Aug 2026 via CRE Daily
- Mortgage Bankers Association maturities, Feb 2026: mba.org
- Tenant improvements, Bisnow and Newmark: bisnow.com; CBRE H1 2026 cap rate survey: cbre.com; appraisal standard: Interagency Appraisal and Evaluation Guidelines, 2010
- 18 Tremont St sale, Banker & Tradesman: bankerandtradesman.com
- Brookfield WI sheriff's sale, Daily Reporter: dailyreporter.com
- Providence Place Mall, KBRA: kbra.com; NEREJ
Listing figures are the brokers' as of the date read. The Norwalk lease-up figures are DHI Capital's illustration. Not investment advice.
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