Washington-Area Office Default Risk Surpasses San Francisco’s
- Capital may become ‘new ground zero’ for distress, Trepp says
- Remote work still prevalent among federal government workers
The office-vacancy rate in Washington was 21.1% in the third quarter, compared with 34% for San Francisco.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The Washington area has passed San Francisco for the highest share of office buildings with bank loans at risk of default, as US government employees continue to work remotely.
Loans of concern on offices in the US capital region climbed to 72% in the third quarter, topping San Francisco’s 71%, real estate data firm Trepp reported. The rate for Washington was 38% at the end of 2022.