Posted 1/14/2024, 11:50:00 PM
Remote Work Empties Offices, Plunging Commercial Real Estate into Crisis
- Office buildings are half empty as hybrid work becomes the norm, causing property values to plummet up to 40%
- $1.5 trillion in commercial real estate loans will come due in the next 2 years, leading to potential crisis
- Occupancy rates have stalled around 89%, far below the 95% landlords used to enjoy, putting financial pressure on owners
- Major cities have lost nearly 2 million residents in last 3 years as remote work enables urban exodus
- Converting obsolete offices into apartments is complicated and often unprofitable, threatening tax bases and budgets