Commercial Real Estate Faces Long Road to Recovery Amidst Great Reset and Bad Debt Spiral.
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.
