Office vacancy rates rise to 13.5% in the US due to remote work, impacting commercial real estate and potentially causing bank failures.
The US embrace of remote work has led to office vacancy rates rising to 13.5% from 9.5% in 2019, with downtown office districts being "very underpopulated" according to US Federal Reserve Chair Jerome Powell. This has caused the value of office buildings to fall, putting pressure on smaller banks and potentially leading to bank failures. The trend has also impacted retailers that served employees in these areas, further straining the commercial real estate sector.
March 10, 2024
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