Real Estate
Billionaire Sternlicht Sees $1 Trillion Loss in Office Values
Property owners have struggled to refinance loans as building values declined and the Federal Reserve increased interest rates rapidly over the past two years.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Billionaire Barry Sternlicht sees more than $1 trillion of losses for office real estate, calling the properties “one asset class that never recovered” from the pandemic.
“The office market has an existential crisis right now,” which is largely a US phenomenon because workers haven’t gone back to their desks, Sternlicht said Tuesday at the iConnections Global Alts conference in Miami Beach.