EVERYTHING IS GOING SWIMMINGLY: The Real-Estate Downturn Comes for America’s Premier Office Towers.

Owners of the most elite buildings escaped this fate for a while by convincing the market they had created a new class of office tower—one that surpassed the traditional Class A building at the top of the pecking order.

These landlords persuaded blue-chip tenants that reluctant workers would return if only their offices sparkled with lush roof decks, fully loaded gyms and food prepared by Michelin-starred chefs. Owners invested heavily in these properties, which were usually new developments with the best locations, views, air quality and modern designs.

But that strategy is losing steam as more companies have accepted the reality of hybrid work schedules and, for the most part, have given up on compelling workers to be in five days a week.

“The ship has sailed on full return to the office for most companies,” said Rob Sadow, chief executive of Scoop Technologies, a software firm that developed an index that tracks workplace strategies. “They’re not going to go from three days a week to five days a week by making their space nicer.”

That is one reason why few office developers are considering new ground breakings.

Good news for the remaining renters, bad news for contractors and their employees.

Plus: “Rents at the highest-end buildings have been falling, while the rate of leasing has been slowing.”

That means they haven’t found the bottom yet.