Remote Work Exodus Puts Office Buildings in Peril as $117 Billion in Loans Face Default
• US office buildings face $117BN in loans coming due this year that may default, threatening banks and the economy • Loans were taken out when interest rates were low; now rates are high, making refinancing difficult • Office building revenues dropped as remote work reduced demand for office space • If loans default, smaller banks may struggle to handle losses, risking insolvency • Falling property values and continued office vacancies compound the problem