The death spiral

The office building death spiral is not universally bad. You know the drill. Because of the economic downturn, the office building becomes worth less than the debt, so neither the owner nor the lender is willing to put more equity (such as for tenant improvement dollars for new tenants; commissions; and for capital repairs and improvements) into the building, so the building cannot capture any new tenants, so the word gets out on the street not to bring any new deals to that building, so the building becomes worth even less, so… Read more: The death spiral – Atlanta Business Chronicle