Office properties are having a tough time right now. Based on the findings in this article, the struggle from WFH could be compounded if a 2023 recession piles on. Vacancy rates are up a little over 3% overall from 2019 (9.2% to 12.3% in September 2022) and in major metros like New York and San Francisco, office utilization rates have plateaued just below 50%. The return to office is expected to increase gradually but companies and property owners are now worried about the economy and possible job cuts in addition to the already limited in-office workforce.
Where office vacancy rates go from here is something to keep an eye on and I know lenders will be hyper-focused on it as well. This is an intriguing instance where it may actually be a benefit that Las Vegas does not have a major central business district of lofty, and at least for now, half-filled office towers.
Link to article: https://www.wsj.com/articles/office-owners-already-reeling-from-remote-work-now-face-recession-risk-in-2023-11672710408?st
Contributed by Sebastian Torres, Vice President
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