Finance

Manulife Faces 40% Decline in US Office Investments From Peak

CFO Simpson says worst may be over for office downturn
Office is 10% of Manulife’s portfolio versus 40% decade ago

The North American market has been deeply impacted by the shift to remote work, with US office vacancy rates surging to a record 19.7% at the end of last year. — The North American market has been deeply impacted by the shift to remote work, with US office vacancy rates surging to a record 19.7% at the end of last year.
Photographer: Cole Burston/Bloomberg

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By Brooke Sutherland

March 20, 2024 at 3:40 PM UTC

This article is for subscribers only.

Manulife Financial Corp. is facing a divided global office market, with the value of its US office investments having plummeted by as much as 40% from a pre-pandemic peak, according to Chief Financial Officer Colin Simpson.

The North American market has been deeply impacted by the shift to remote work, with US office vacancy rates surging to a record 19.7% at the end of last year. This stands in contrast to Asia, where office buildings are relatively full, Simpson said in an interview.