Commercial Real Estate Faces Long Road to Recovery Amidst Great Reset and Bad Debt Spiral.
TL;DR Summary
US office buildings are unlikely to recover their pre-pandemic values until at least 2040 due to weakened demand for desk space caused by hybrid and remote work, according to a forecast by Capital Economics. The values are expected to plunge 35% from the peak by the end of 2025, and the road ahead for office owners is set to be an arduous one. Major institutional investors have already defaulted on some office buildings, and about $18 billion of office buildings were considered distressed at the end of March.
Topics:business#distressed-properties#institutional-investors#office-buildings#real-estate#real-estate-market#remote-work
- Office properties won't rebound before 2040: forecast Crain's Chicago Business
- Commercial Real Estate Reset Is Causing Distress From San Francisco to Hong Kong Bloomberg
- Chicago's Office Market Slow to Adapt - CPE Commercial Property Executive
- Silicon Valley office vacancy jumps to 17% as tech firms shed floors The Real Deal
- Commercial Real Estate's Great Reset Kicks Off a Bad Debt Spiral Bloomberg
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