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Thursday, June 22, 2023

US Office Owners Get Dire Warning: Rebound Unlikely Before 2040

 

  • Property values seen plunging 35% from pre-pandemic peak
  • Major investors have already begun defaulting on buildings

US office buildings are unlikely to regain their peak pre-pandemic values until at least 2040 as demand for desk space weakens, according to a forecast by Capital Economics.

Values are expected to plunge 35% from the peak by the end of 2025 and take an additional 15 years or more to recover as hybrid and remote work reshape real estate, the London-based research firm reported Thursday. It’s a trend that mirrors the collapse of shopping malls as e-commerce grew.

https://www.bloomberg.com/news/articles/2023-06-22/office-owners-get-dire-warning-rebound-unlikely-before-2040

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