Blackstone’s Gray Calls the Bottom After Office-Market Rout (2)

Blackstone Inc., the world’s largest commercial property owner, said the worst is over for the global office market after a prolonged slump fueled by the pandemic.

“Office has bottomed, particularly in stronger markets and better-quality buildings,” Blackstone President Jon Gray said in an interview before the firm reported fourth-quarter earnings Thursday. The results showed a surge in profit even as the real estate business slumped.

Valuations for US offices have tumbled 50% to 70% from their peak, he said, and they’re poised for a rebound.

The declaration marks a shift for Blackstone, which has been ...