Office Property Values Plunge 35% and Face Further Declines As Remote Work Trends Dent Demand

Office property values have already dropped 35% and are expected to fall further, potentially matching or exceeding the 47% plunge seen during the 2008 financial crisis

Remote work trends, higher interest rates, and tighter financing conditions will slow any recovery in office valuations

The commercial mortgage-backed securities (CMBS) delinquency rate for office properties could top 9.9% by 2025, above the post-2008 peak

Distress is mounting across commercial real estate, with prices facing their biggest drop in 50 years amid high rates and weak financing conditions

A wave of $2.2 trillion in commercial debt matures in 2027, and extensions of distressed loans are only delaying an inevitable crash