Company: SQFTP
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001437749-25-010185
Chunk: 1016

Company: Presidio Property Trust, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 1016
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 debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective”(4).  Although rates decreased in 2024, it does not necessarily indicate that we would be unable to refinance or obtain mortgages on new homes or commercial properties at the same rate we have historically when they come due, as rates vary by property and are dependent upon factors including property cash flows, occupancy rates and lender credit.

As noted by Colliers Securities in its Q32024 Office Outlook: "The U.S. office market ended 2024 with early signs of stability as metrics improved throughout the year, and much less space was returned to the market than in 2023. However, strong headwinds in 2025 suggest an uneven recovery and likely several bumps over the next few years. Occupiers continue to reduce space as their leases expire but are likely to upgrade to a higher quality space and building. Despite headlines focused on large companies' return-to-office efforts, most have evolved their office operations, embracing flexibility to encourage productivity. Large, sprawling campuses are being rethought, with the potential for redevelopment opportunities."

(2) Source: https://www.bankrate.com/mortgages/mortgage-rates/#mortgage-news

(3) Source: https://selectcommercial.com/commercial-mortgage-rates.php

(4) Source: https://www.federalreserve.gov/newsevents/pressreleases/monetary20250129a.htm

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    Going forward  returning federal employees to offices five days a week could positively impact office occupancy, according to Colliers. However, initiatives to reduce overall leased space could negatively affect markets with a significant federal presence. Opportunities for the private sector to buy federally owned properties could stimulate redevelopment or conversion to another use, primarily if local municipalities assist with efforts to streamline approvals. Capital markets have been rebounding, noted Colliers.  Price adjustments are leading investors back into the office market. While sales are not at pre-pandemic levels, Colliers noted that volume topped $21 billion in the fourth quarter, nearing year-end 2022 levels. Total sales increased 36% compared to one year ago, with  central business district activity rebounding. Office sales have more than doubled from one year ago and have had the largest quarterly volume since first-quarter 2022.

MANAGEMENT EVALUATION OF RESULTS OF OPERATIONS

Management’s evaluation of operating results includes an assessment of our