The valuation change is likely permanent but do you think the funds believe they can push a few years down the road?

As with most things, timing matters. When will the CRE credit crisis hit? If banks and investors are okay changing terms and delaying payouts couldn’t this futility last several years? 

 I mean that’s the play…try to keep it unrealized long enough…but where the property value will really start to struggle is on the massive CAPEX and growing vacancy (or rates they can charge) 

 Some are realising losses now, and on the flip side the buyer in the same deal sees value despite the capex, unless the plan is to demolish (attractive discount may help the economic case)

https://www.bisnow.com/new-york/news/office/ubs-auctions-off-office-tower-for-975-loss-125334