Downtown Real Estate and Public Transport Bonds Face Downturn

According to the Wall Street Journal, across ten major metro areas, office buildings are operating at only 50% capacity compared to pre-pandemic levels, and public transportation ridership rates have plummeted by 70%, primarily due to the rise in hybrid and remote work. This has resulted in falling prices for related assets.  Equity prices of REITs focusing on downtown real-estate investments are trading at almost half their pre-pandemic levels and bonds backed by commuter fares and commercial mortgage-backed securities are facing widening spreads. Read More.