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horenstein, a San Francisco-based developer facing significant challenges in the office market, has made sweeping cuts to its leadership team. The company, which owns and manages 13.6 million square feet of US real estate, has laid off seven executives across its San Francisco and New York offices, including Vice President of Leasing Jim Collins and Senior Vice President of Asset Management Paul Grafft. All had served the firm for years, with some having spent over two decades at Shorenstein.

    The layoffs come as the company struggles to manage a portfolio of office investments worth between 6 million and 7 million square feet, which are in various stages of financial distress. This includes buildings where loan payments have been halted or are being automatically rerouted to cover monthly costs, as well as properties considered unlikely to remain in Shorenstein's portfolio long-term.

    Shorenstein has also sold or lost over 2.7 million square feet of office properties to foreclosure in the past year, with defaulted or at-risk debt reaching $822 million in June. Despite these challenges, the firm continues to invest in commercial real estate, having recently acquired two new properties in Atlanta and Dallas for a combined total of over $120 million.

    The company's restructuring efforts aim to "rightsize" its asset management capabilities for today's market, according to an unidentified spokesperson. Neither Shorenstein's investment committee nor executive committee were impacted by the layoffs.