"Banking Crisis Looms as 'Zombie Offices' Threaten Commercial Real Estate"
Many office buildings across major U.S. cities are struggling with low occupancy rates and plummeting property values, leading to concerns about the potential impact on banks holding commercial real estate debt. A recent study estimates that a significant portion of commercial real estate loans, particularly office loans, are underwater. The combination of employees continuing to work from home and high interest rates has contributed to a slow-burning crisis in the commercial real estate market, with even higher-quality office properties experiencing a 35 percent price drop from their peak. Analysts and regulators anticipate looming losses for banks, with recent stock plunges for some lenders serving as a preview of potential problems.
- 'Zombie Offices' Spell Trouble for Some Banks The New York Times
- New York Community Bank's troubles threaten a new crisis Semafor
- Yellen: It’s ‘obvious’ that empty office buildings will create banking stress and losses CNN
- Yellen Says Commercial Property Is a Worry, But Regulators Are on It Bloomberg
- Commercial real estate a 'manageable' problem but some banks will close: Powell Yahoo Finance
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