Brookfield to Acquire Peakstone Realty

The agreement includes a limited go-shop period and termination provisions allowing for competing offers.

American Strategic Investment Sees Stock Purchase by Director Nicholas Schorsch

The transaction underscores continuing insider confidence amid the company's evolving ownership structure.

KBS REIT III Slashes Valuation

KBS REIT III Cuts Estimated Share Value to $2.70 as Debt Maturities and Office Market Struggles Intensify

KBS REIT III has lowered its estimated share value to $2.70, down from $3.89 a year ago. The reduction reflects what’s happening on the ground: leasing activity remains slow in key markets, valuations are under pressure, and near-term debt maturities are adding complexity to the path forward.

The firm’s updated valuation is based on a new round of appraisals across its 12-property portfolio. Total asset value dropped by nearly $500 million year-over-year. West Coast properties saw the sharpest declines, with valuations falling more than 24%. Assets in San Jose, Emeryville, and downtown Minneapolis continue to experience lower-than-expected leasing demand, keeping occupancy well below historical levels.

As of September 30, 2025, KBS REIT III’s portfolio totaled roughly 5.6 million square feet, with average leased occupancy at 80%. Leasing performance varied sharply by region. In San Jose, two buildings were only 51% and 72% leased, respectively. Emeryville remained flat at 56%. Minneapolis was stronger at 74%, but leasing momentum there hasn’t been enough to offset market-wide softness.

That said, not all markets are seeing the same drag. Town Center in Plano, Texas posted over 120,000 square feet in new leases during the 12 months ending Q3 2025, pushing leased occupancy from 71% to 81%. Across the broader office market, absorption for Class A buildings improved in the second half of 2025, supported by ongoing return-to-office mandates from large employers and public sector tenants.