Dire warnings about commercial real estate appear almost daily these days. While office markets are stressed due to increased working from home, some real estate professionals see an increasingly bifurcated market, divided “into haves and have-nots.” Investors, renters, and cities—especially those with older, declining buildings— will need to pay close attention in the coming months to see where they fall and how bad things might get.
Dramatic negative evaluations of commercial real estate are easily found. The San Francisco Standard foresees an “epic commercial real estate crash” looming over that city, comparing it to an approaching train with “the city, its budget, and its ability to provide services tied to the tracks.” Not to be outdone, Bloomberg tweeted “remote work is killing Manhattan’s commercial real estate market” with similar problems extending to other cities.
Photo by LinkedIn Sales Solutions on Unsplash