More distress is likely imminent, MSCI Chief Economist Jim Costello said. Even if some tenants with leases signed before the pandemic aren’t using space fully, they are still paying for it. But when leases expire, they might downsize and leave owners with less cash flow to pay off impending debt maturities.  “That might also lead to those come-to-Jesus moments where [owners] are forced to accept losses because they simply can't refinance,” he said.  In New York City, where some of the first marks of distress began showing up a couple of years ago, the pain has become more acute in recent months. In March, GFP Real Estate and TPG entered into contract to buy 222 Broadway at a 70% discount — shaving off more than $300M from what Deutsche Bank’s asset management arm paid for it in 2014. In July, UBS Realty Investors sold the 20-story office building at 135 W. 50th St. at an auction for a 97.5% discount to its prior price. Massive losses are piling up all over the country. In March, a joint venture led by Florida-based Sigma Plastics Holdings jumped on the Schaumburg Towers in Chicago, acquiring the 808K SF pair of buildings for $74M after no bidder put down the minimum $75M bid at auction. In July, the county government in Seattle bought the Dexter Horton Building at 710 Second Ave. for $36.6M — far below the $151M it sold for in 2019. " https://lnkd.in/gTynFCbx