Real Estate
Distressed US Offices Jump to $24.8 Billion, More Than Malls
- Office buildings took biggest hit in second quarter, MSCI says
- Defaults mount as remote work takes hold, interest rates jump
An office building in New York.
Photographer: Amir Hamja/BloombergThis article is for subscribers only.
About $24.8 billion of US office buildings were in distress at the end of the second quarter, surpassing previous leading commercial real estate laggards — hotels and retail properties.
The total value of offices that were financially troubled or already repossessed by lenders shot up about 36% from the first quarter, MSCI Real Assets reported Wednesday.