You have to adjust your expectations to match current reality, which includes higher mortgage rates, higher prices, more expensive taxes and insurance, more competition, etc.

Now, let's adjust structure type as that alone will get some really good focus right.

If it’s a tax office, they could be swamped or uncertain about their future.What’s your gut telling you.. are you leaning more toward a full rent adjustment, or focusing on retension for the long haul?

When the tide does shift, you'll be cruising on Easy Street while the others are still getting in the water, adjusting their goggles, and warming up their muscles.

I have financed a number of STR properties and they will usually be appraised as a pure real estate as vacant value and a cash flow adjusted commercial value, sometime separated as going concern and real property.  

I agree with Dominic, I would price it according to the market and CHA will make the adjustments on their end.

This included some landmark deals including Rockefeller Center’s $3.5B loan and Miami Beach’s Fontainebleau $1.2B refinancingAlternative lenders filling traditional banking gaps with short-term solutions which has already begun a cycle of consolidation that will likely continue and accelerate in 2025The Office Sector Divide:CBD property values are down 50.7% from 2021 peaksClass A office properties seem to be in their own vacuum of prosperity with trophy properties commanding premium rents ($100+ PSF nationally, up to $247 in top markets) with strong occupancyHybrid work continues impacting older building valuations which have not faired as well, but this may begin to rebalance as more companies are instituting mandates to return to physical officesChallenges & Opportunities:$1 trillion in loans maturing by 2026Interest rates up from 3.5% (2021) to 6.74% (2024)Experts such as AEW’s Michael Acton and Blackstone’s Nadeem Meghji see the best entry point in the last 15–20 years and we agreeMarket Outlook:Current market conditions present unique opportunities, with inflation-adjusted prices at historic lows and yields at decade highs.

@Joe AuA HELOC has an interest rate that is adjustable......

Most of the REITs are classified as Micro as to size and have great volatility in pricing and net asset value adjustments.  

I had a huge opportunity fund earning nothing and my rates were above 6% and/or commercial loans that were callable, adjustable and bothering me every year for my financials.