8 - Explain this statement. Why do you believe this statement is true? Or why do you believe this statement is not true? Cite examples.

Debt funds will continue to be active in the office sector to earn incremental spread for their investors, Hemandez said, adding office is the most scalable sector, given the larger lot sizes. Global altemative investment firm Varde Partners is focusing most of its lending in Sun Belt metros that have a large number of new jobs being created to hopefully offset some of the potential issues created by hybrid work, said Jim Dunbar, partner \& head of real estate lending at Vrde Partners. But Varde is still making selective loans in cities like Los Angeles, where one of the firm's fourth-quarter deals was a $23 million refinancing for an office building near the Arts District that has a mix of tenants. He said the loan is consistent with Varde's thesis that there will be continued demand for office bulidings even in a hybrid environment. ESG concerns are also top of mind for lenders. Vrde, for example, is targeting more modern, top-quality buildings that don't need capital improvements and amenities to attract tenants in a post-pandemic. In newer properties, the wellness features that tenants demand today are already built in