Office

Capital Advisory For Office Properties

OVERVIEW

Macallan Capital Partners provides comprehensive investment banking and advisory services for office projects. Our team brings decades of experience in structuring capital solutions tailored to the unique requirements of this asset class.

Whether you are seeking debt financing, equity partnerships, or strategic advisory, we leverage our deep industry relationships and market expertise to deliver optimal outcomes for our clients.

Market Opportunity

The office market is experiencing a structural transformation creating significant capital deployment opportunities for sophisticated sponsors and investors. While traditional office faces headwinds from work-from-home adoption and elevated vacancy in secondary markets, differentiated assets are capturing outsized investor demand. Class A trophy buildings in primary tech and financial centers, adaptive reuse projects breathing new life into obsolete stock, and emerging life science office conversions command premium valuations and strong interest from global capital. The bifurcated market rewards superior locations, best-in-class amenities, and buildings positioned to adapt to hybrid work models—creating a selective opportunity set for institutional buyers with operational expertise and growth capital.

Macallan Capital Partners brings nuanced expertise in navigating the complex dynamics of modern office real estate. Our team understands the distinction between trophy core assets deserving low-cost-of-capital treatment and value-add and opportunistic plays requiring operational transformation. We engage capital partners across the return spectrum—from yield-focused investors in stabilized Class A portfolios to growth-oriented sponsors pursuing creative reuse strategies. Our involvement spans trophy asset recapitalizations, adaptive reuse development, and emerging life science conversions, leveraging relationships with specialized lenders comfortable with use-type conversions and operational transition risk.

$2.8T
U.S. Office Real Estate Market Value
12.2%
Vacancy Rate (2024)
6.1%
Class A Primary Market Cap Rate
$89B
Annual Office Investment Volume

Asset Profiles We Serve

Class A Trophy Properties

Iconic office towers in prime downtowns with world-class tenants, strong credit quality, and exceptional location fundamentals. Resilient assets commanding stable occupancy and pricing power, appealing to institutional investors seeking core income and capital preservation.

Suburban Office & Corporate Parks

Institutional-quality suburban office parks and corporate campuses near major employment centers. Diversified tenant bases with operational roots in specific communities provide stickiness, while lower land costs enable amenity and technology upgrades to compete with urban alternatives.

Life Science & Biotech Office

Lab-integrated office buildings and research parks serving pharmaceutical, biotech, and life science companies. Mission-critical facilities with specialized infrastructure, long-term tenant relationships, and value-add potential through space reconfigurations create premium economics and growth optionality.

Adaptive Reuse & Creative Office

Converted warehouses, historic buildings, and industrial lofts repurposed as creative office, media, and tech company spaces. Distinctive architecture and authentic character attract quality tenants while lower basis enables strong returns; development upside from phased repositioning.

Typical Deal Structure

Debt Placement

  • Life Insurance Company Mortgages (Class A trophy, 10-12 year fixed)
  • CMBS Securitization (60-70% LTV Class A; 50-60% value-add)
  • Bank Credit Facilities (floating, repositioning phase)
  • Mezz/Preferred Equity (conversion and adaptive reuse risk)

Equity & Joint Ventures

  • Office REIT Partnerships (4-5.5% yield)
  • Core-Plus Value-Add Funds (7-10% IRR)
  • Adaptive Reuse Development JV (12-16% IRR)
  • Life Science Conversion Opportunities (14-18%+ IRR)

Office transactions range from $30 million for smaller suburban assets to $3 billion+ for flagship downtown towers. Trophy asset recapitalizations tend toward the higher end with lower leverage; value-add and adaptive reuse plays span the full range with more aggressive capital structures. Macallan structures deals with careful attention to lease rollover risk, tenant creditworthiness, location macro trends, and operational complexity specific to conversion and repositioning projects.

The Macallan Approach

Location Selectivity & Tenant Fundamentals

We apply rigorous filters to identify resilient office markets and properties with defensible tenant bases. Our analysis evaluates location macro trends, employment center dynamics, tenant credit stability, and lease rollover schedules. We distinguish between core assets deserving stable capital treatment and properties requiring operational transformation to justify higher return targets.

Adaptive Reuse & Conversion Expertise

Macallan brings deep experience structuring adaptive reuse and use-type conversion transactions—from traditional office to life science labs to mixed-use redevelopment. We engage specialized advisors in design, engineering, and operational planning; understand lender comfort with conversion risk; and provide strategic guidance on phasing, lease-up strategies, and capital deployment timing to optimize conversion returns.

Institutional Capital & Risk-Appropriate Funding

We maintain relationships with lenders and equity investors calibrated to different office risk profiles—from trophy asset REIT capital to specialized life science conversion funds. Our role ensures transactions are matched with capital sources comfortable with specific deal characteristics, enabling competitive pricing and favorable terms aligned with risk-appropriate return expectations.

Ready to discuss your office project?