CRE Downturn Felt by Office Building Sector

According to the Wall Street Journal, the office building market is facing significant challenges as a result of declines in property values, due to a combination of factors, including lower return-to-office rates and demand for space and higher interest rates. Data from MSCI reveals that investors purchased only $10.7 billion in office property during Q1 2023, representing a 68% decrease compared to the same period last year. Furthermore, delinquencies of commercial mortgage-backed securities backed by office loans reached 2.77% in April, the highest level since 2019.

Read More