The Impact of Corporate Relocation on Office Real Estate.

The shift towards remote and hybrid work has led to a fundamental change in office demand, with companies cutting back on their physical footprints and becoming more selective about the spaces they take. This has left many older office buildings vulnerable, as they lack the "wow factor" that tenants now demand. Rising interest rates, higher operating costs, and reticent lenders present another financial hurdle for landlords who are contemplating spending tens of millions of dollars on upgrades. Almost $400 billion of office debt is set to come due in the next 5 years, saddling owners simultaneously with refinancing costs that are likely to tally in the tens of billions of dollars.