This is what needs to happen:
If commercial office loans aren’t performing, banks need to seize and sell off the underlying assets. Other real estate managers will buy these properties from the banks manage them anew—or perhaps redevelop them as residential properties.
That is how the system is supposed to work and would work, if left to go through the intended process.
Otherwise, losers are rewarded, the moral hazard of careless bank loans is increase, and more responsible lenders are not relatively rewarded.
If some banks go under, so it goes. That is how the rest of the economy works.
An apt metaphor is a forest in which neither fires nor cutting of underbrush are allowed until full conflagration comes.