The so called “capital stack”, the money investors and lenders have put into an office building investment, has recently been the subject of much discussion in markets like San Francisco.  In many cases, the stack is broken, meaning the investor has lost all its equity and the value of the lender’s position is compromised, as well.  We’ve reached a point at which these financial partners have concluded there is no path forward for the investment, leaving only one option:  sell.  This is how the Great Reset begins.  It’s exemplified in the sale of buildings like 350 California Street, an asset that would have traded in the $800/sf+ range prior to the pandemic, but which traded in the $250/sf range this year.