Reported about 1 year ago
The commercial real estate sector is experiencing distress as office vacancy rates soar to record highs. Moody's Analytics reports that the office vacancy rate has hit 20.1%, marking the first time it has surpassed 20%. The trend is expected to continue with a projected peak in distress around 2025 or early 2026, as remote work becomes permanent and office employment softens. Factors like obsolescence and the need for property repurposing are emphasized, emphasizing the challenges facing the industry in the face of remote work and changing demand patterns.
Source: YAHOO