Sell your office building
Half empty, rollover stacked in one year, or a building the market has decided is the wrong asset. We buy office as it is.
Office Building at a glance
- Typical deal size
- $1M – $25M
- Lease structure
- Full service gross, modified gross, or NNN
- Typical term
- 3–10 years
- Escalations
- 2–3% annually
Overview
What office buildings are really worth
Our read
Office is the one asset class where the last decade's underwriting is actively misleading. Downtime is longer, tenant improvement allowances are higher, and tenants renew into less space than they left. An owner modeling 2018 leasing assumptions onto a 2026 building will not like what the market tells them.
But the useful framing is bifurcation, not collapse. A well-located suburban building with surface parking, suites in the two-to-eight-thousand-square-foot range, and a working capital position leases at a reasonable rent. Large-floorplate commodity space in a weak submarket does not lease at any rent. The spread between those two outcomes is wider than in any other property type, and averaging across them produces a number that describes neither.
The question that decides many of these buildings is not what rent it can achieve but whether office is still its highest and best use. That is a physical question — floorplate depth, window line, core position — and it gets answered by the building, not the spreadsheet.
Valuation
How we underwrite it
The method
We underwrite office on rollover timing first and rent second. When leases expire matters more right now than what they pay, because each expiration carries downtime, tenant improvement dollars, and a real probability the tenant takes less space.
Utilization gets weight where the data exists. A building at 95% leased and 40% utilized has a renewal problem that the rent roll actively conceals, and we would rather price that honestly than discover it at the first expiration.
Capital position is priced up front. HVAC, elevator, roof, and common areas get assessed against what a tenant expects today, not against code minimums. Deferred capital is extremely common in office right now because owners under cash flow pressure defer it.
Where office may not be the long-term use, we underwrite conversion feasibility physically — floorplate depth and window line — rather than assuming it. Buildings that genuinely convert are worth more than their office income; buildings that cannot are worth what the office market says, and we will not pretend otherwise.
What moves the number
- 01Physical occupancy versus utilization — a fully leased building running at 40% badge-in has a renewal problem the rent roll cannot see
- 02Weighted average lease term and how much of the rollover lands in one year
- 03Tenant size mix, since a building of small suites is more resilient than one large tenant occupying most of it
- 04Parking ratio, which has become a genuine differentiator as suburban tenants trade downtown space for drive-to locations
- 05Capital position — elevator, HVAC, roof, and common area condition against what a tenant now expects
- 06Class and location within the submarket, because the flight to quality has widened the spread between good and average product
Capital markets today
- 10-yr Treasury
- 5.24%
- 4.12% a year ago
- SOFR
- 3.87%
- 4.2% a year ago
- 30-yr mortgage
- 7.28%
- 6.3% a year ago
- CRE loan delinquency
- 1.53%
- 1.57% a year ago
- CRE prices, YoY
- 6.58%
- -2.7% a year ago
Sources: FRED DGS10, 2026-10-01 · FRED SOFR, 2026-10-01 · FRED MORTGAGE30US, 2026-10-01 · FRED DRCRELEXFACBS, 2026-04-01 · FRED COMREPUSQ159N, 2026-01-01
Diligence
What a buyer actually looks at in a office building
- Check 01
Rent roll with lease abstracts and rollover schedule
Office value now turns on when leases expire more than on what they pay. Stacked rollover in a single year is the difference between an asset and a project.
- Check 02
Actual utilization data where available
Badge or access-system data reveals whether the space is used. A tenant paying rent on space they do not occupy is a renewal risk the rent roll will not show.
- Check 03
Unamortized TI and leasing commission obligations
Office deals carry large TI and LC costs. Obligations already committed but not yet spent are real liabilities.
- Check 04
HVAC, elevator, and roof condition
These are the three largest capital items in an office building and deferring them is common when cash flow is tight.
- Check 05
ADA and life-safety compliance
Older office stock frequently has accessibility and egress issues that surface at permit time during a re-tenanting.
- Check 06
Conversion feasibility — floorplate, core, and window line
Where office is not the highest and best use, the physical characteristics determine whether conversion is realistic or fantasy. Floorplate depth is usually the deciding factor.
Backfill risk
What happens if the tenant leaves
The tenant-goes-dark scenario
Office is the asset class where backfill assumptions have changed most, and where owners are most likely to underwrite the last decade rather than the next one. Downtime is longer, tenant improvement allowances are higher, and the tenant is very often taking less space than the one that left.
That said, the market is bifurcated rather than broken. Well-located suburban buildings with parking, small-to-mid suites, and a real capital position lease. Large-floorplate commodity space in a weak submarket does not, at any rent. Treating office as one asset class is the mistake — the spread between the top and the bottom is wider than in any other property type.
Where the building genuinely does not work as office, conversion becomes the question, and the answer is physical rather than financial. Floorplate depth and window line determine whether residential conversion is even possible; most commodity office fails that test regardless of what the spreadsheet says. Buildings that pass are worth substantially more than their office income implies, and buildings that fail are worth less.
Why this matters to you
Every buyer prices the tenant-goes-dark scenario, whether or not they say so out loud. It is the largest hidden input into the cap rate you get offered.
Understanding it before you go to market is the difference between negotiating and being negotiated with.
Who sells to us
Situations we see most often
- Owner facing a loan maturity on a building that no longer appraises to the debt
- Anchor tenant downsizing or not renewing after a hybrid work policy
- Owner-user who has outgrown or shrunk out of their own building
- Partnership unwilling to fund the TI and leasing commissions a lease-up requires
- Building where a conversion to another use is the real answer and the owner does not want to execute it
Buy box
What we buy
- 01Suburban and secondary-market office, $1M to $25M
- 02Vacant and partially leased
- 03Buildings with near-term rollover concentration
- 04Conversion candidates
Process
How selling to Dizposition works
Day 0
01Send us the property
Address, asset type, and the lease if there is one. That is enough for us to start.
- 02
We underwrite it
Our underwriting runs the income against current market pricing and the cost of capital. No lowball anchor.
10 minutes
03You get a firm offer
In 10 minutes, with the math shown. You will know exactly how we got there.
As fast as 30 days
04Close on your timeline
As fast as 30 days, or as slow as you need. We are the principal, so the date is yours.
FAQ
Selling an office building
My building is half empty. Can you still buy it?
Yes, and vacancy is one of the more common reasons owners call. We underwrite the lease-up rather than requiring it be done first, which is the opposite of what a lender-financed buyer needs. Expect the number to reflect realistic downtime and tenant improvement costs, because that is what lease-up actually costs today.
Is office even sellable right now?
Some of it, at the right number. The market is bifurcated rather than closed. Well-located buildings with parking and a reasonable capital position trade; large-floorplate commodity space in a weak submarket is genuinely difficult. We will tell you honestly which one you have.
My largest tenant just gave notice. Should I wait until I re-lease?
Usually not. Re-leasing costs money — TI, commissions, and months of downtime — and you would be funding all of it to sell into the same market afterward. It is worth seeing our number now and comparing it against what lease-up would actually cost you.
Could my building be converted to apartments?
Sometimes, and it is a physical question before it is a financial one. Floorplate depth and window line decide it — space more than about thirty feet from a window is very hard to make residential. If your building passes that test it is worth more than its office income suggests, and we will underwrite it that way.
How long does it take to sell a commercial property to Dizposition?
You get a firm written offer within 10 minutes of sending us the property. If you accept, you can close in as little as 30 days — most of that is title work and your own timeline. There is no listing period, no marketing, and no waiting on a buyer's financing contingency.
Can I sell my property as-is?
Yes. We are the buyer, so there is no lender requiring repairs and no inspection contingency to renegotiate against you. Deferred maintenance, a failing roof, an aging tank system — we price it into the offer rather than asking you to fix it first.
Can I sell with a tenant in place?
Yes, and in most cases a tenant makes the property more valuable to us, not less. We will ask for the lease, a rent roll, and any estoppel certificates. You do not need to deliver the property vacant.
What if my lease is short-term or about to expire?
Short remaining term is one of the main reasons owners come to us. A conventional buyer needs lease term to get financing, which is why short-dated assets sit on the market. We underwrite the real estate and the backfill prospects rather than the remaining term alone.
Do I need a broker to sell to you?
No. We buy directly, and there is no commission because there is nothing to market. If you already have a broker, we will pay them. Selling without one saves the commission, but you should understand you are also giving up price discovery — a broker's job is to find out whether someone will pay more than we will.
What documents do I need to get an offer?
The address and the lease are enough to start. To finalize, we will want the rent roll, the last two years of operating statements, the title commitment, any existing survey, and any environmental reports you already have. You do not need an appraisal or a broker package.
How do you determine your offer?
We underwrite in-place income against what the space would re-lease for, adjust for capital needs and any environmental tail, and apply a cap rate supported by comparable transactions. We show you the inputs. If you disagree with an assumption, we would rather argue about the assumption than about the number.
What are typical seller closing costs?
Title and escrow fees, any transfer or recording tax owed in your state, prorated property taxes, and payoff of any existing debt. Because we are the buyer, there is no commission and no marketing cost. Transfer tax varies significantly by state and is often the largest single line.
Will I owe capital gains tax when I sell?
Usually yes, on the gain above your adjusted basis, and depreciation recapture is taxed separately from appreciation. State treatment varies. This is a question for your CPA before you sign, not after — the structure of the sale can change the answer.
Can I do a 1031 exchange?
Yes. A 1031 exchange lets you defer federal capital gains by reinvesting in like-kind property, subject to a 45-day identification window and a 180-day closing window from the date you sell. You must have a qualified intermediary in place before closing — it cannot be arranged afterward. Most states conform to federal treatment, but a few do not.
Can I sell if I am behind on payments or facing foreclosure?
Yes, and speed is the reason to move early rather than late. We can close on a defined date, which is what a lender or a receiver generally needs to see. Send us the payoff figure and any notices you have received.
Can I sell a property I inherited or that is in probate?
Yes. Probate sales take longer because the court timeline governs, not ours, and multiple heirs need to agree on the price before anything can close. We are used to working around both. Inherited property also generally receives a stepped-up basis, which can change the tax math substantially.
What if there is environmental contamination?
Send it anyway. Environmental history is one of the most common reasons a conventional sale falls apart, and it is one of the reasons owners call us. We price the remediation and the residual liability into the offer rather than walking away at the Phase II.
Is there any cost or obligation to get an offer?
None. There is no fee, no listing agreement, and no obligation to accept. If our number does not work for you, you keep the underwriting we showed you and we part ways.
Markets
Top markets we buy office buildings in
Browse by state
50 state markets
- Arizona
- Texas
- Florida
- Alabama
- Alaska
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Other property types
- Gas Stations & Convenience Stores
- Warehouses & Distribution Facilities
- Car Washes
- Storage Facilities
- Industrial Outdoor Storage Facilities
- Manufacturing & Logistics Facilities
- Medical Offices
- Shopping Centers
- Hotels & Motels
- Marinas
- Multifamily Properties
- Assisted Living Facilities
- RV & Mobile Home Parks
- Parking Garages & Lots
- Campgrounds
- Billboards
- Cell Towers
- Churches
- Funeral Homes
- Commercial Land
- Farms & Ranches
- Resorts & Retreats
- Auto Collision & Repair Shops
- Auto Parts Stores
- Oil Change & Lube Centers
- Truck Stops
- Grocery Stores
- Drive-Thru & Casual Dining Buildings
- Coffee Shops
- Liquor Stores
- Pharmacies
- Dispensaries
- Urgent Care Centers
- Veterinary Clinics
- Dialysis Centers
- Dollar Stores
- Cell Phone Stores
- Early Education Centers
- Private & Charter Schools
- Bank Branches
- Movie Theatres
- Pawn Shops & Check Cashing Stores
- Data Centers & Battery Farms
- Post Offices
- Government Buildings
- Auto Dealerships
- EV Charging Stations
- Hospitals & Surgery Centers
- Gyms & Fitness Centers
10-minute offer
Ready to sell your office building?
Send us the property and the lease. You'll have a firm offer, with the math shown, in 10 minutes.


