scarlet: team bloomberg's craig giamonna. we have the future of office in real estate.ur next guest says not all cities are created equal. this is bloomberg. ♪ scarlet: this is bloomberg markets. many commercial real estate properties are at high risk of default heading into 2025. for more on the commercial estate market, i went to bring in the founder and ceo of united capital john deveney. things like cms, you have been calling for a considered implosion of office building collateral. before we get to which cities those are, why is that with interest rates heading lower and transactions in the space picking up? john: one of the biggest forces are the 10 year treasury moving from 2% to 4.5%. just that alone the appraisals from 10 years ago at a 4.5 cap rate to go to a 6.5 cap rate today. for the best properties, that winds up being a decline of 25 to 30%. these are huge headwinds for these companies to refinance. inflation made all the property taxes and expenses go up. inflation made the buildings go down as well. we don't need to get into work at home. work at home i