Commercial Real Estate hit by construction boom, oil bust, pandemic, working from home, now hiring freezes and layoffs. Older office towers dish out huge losses.
Among the tenants that decided not to re-open their stores along the Mag Mile were Macy’s, Uniqlo, and the Gap.
Older office towers are besieged. Working-from-home and hybrid-work aren’t helping. The losses are huge.
Office vacancy rates are already huge, foreclosures of office towers are piling up, and office attendance is still very low, everywhere.
And it has nothing to do with supply chains. Dear Fed, go have a look at the fruits of your labor.
If you have a building with drug store that’s only making money in its pharmacy, your years of collecting fat rent checks are likely numbered.
The loans were securitized into CMBS in 2014. From hype to heck in 7 years. Other markets with office busts have something to stew over.
Companies adjust their office footprint to working from home.
Many office buildings may become irrelevant, many malls already have. What does the future hold for once-flourishing buildings? Housing is a pain point for many people. Now we face higher interest rates and high inflation.
Brick & Mortar Meltdown Continues.