The $20 trillion US commercial real estate market has been facing a delayed shakeout due to the difficulty in determining property values. Additionally, lenders have been reluctant to act tough on borrowers facing financial strain due to the pandemic, as they did not want to take on devalued loans. As a result, transactions have come to a standstill, with sellers unwilling to sell properties at distressed prices. This has allowed them to maintain the illusion that nothing has significantly changed.
https://www.bloomberg.com/news/features/2024-02-14/real-estate-lenders-confront-falling-us-commercial-property-prices