Analysts are increasingly focused on rising office property vacancy rates, driven by remote-work trends and higher costs of living. They are worried that cash-strapped landlords could default on loans and cause losses in banks' CRE portfolios.
Office property owners that were able to weather the worst of the pandemic are crashing into a hard reality wrought by sharply lower demand and higher interest rates. Undercurrents of stress are now emerging in the form of defaults.
Office property owners that were able to weather the worst of the pandemic are crashing into a hard reality wrought by sharply lower demand and higher interest rates. Undercurrents of stress are now emerging in the form of defaults.
Business hotels reliant on business trips, suffer in a post-pandemic world in which remote-meetings often replaces travel. these locations could suffer if recovery slackens.