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Opinion
Conor Sen

Office Markets Are the Real Estate Crash We Need to Worry About

While a soft landing is still possible for housing and labor, it's going to get ugly for city business districts.

Prepare for the worst.

Prepare for the worst.

Photographer: Amir Hamja/Bloomberg

While everybody's been sweating over the housing and labor markets, the office market has been streaking toward a hard landing.

The Federal Reserve's new hawkish stance has pushed stocks lower and heightened concerns about the direction of the US economy over the coming year. Anxiety has been centered on labor and housing crashes, but investors, city mayors and economic developers have kept up hopes for improvement in the office market. It's best to let go of that wishful thinking.