Empty boxes: As remote work endures, many office buildings are losing value

Cities are bouncing back. Offices remain mostly empty. What are all those towers really worth?

Blackstone is handing back the keys to an outdated office building north of Times Square. In Chicago, Alliance HP walked away from the leasehold on a West Loop office. A loan on Jamison Properties’ Equitable Life Building in Los Angeles is on a watchlist of properties in danger of defaulting.

Office landlords across the nation, hammered by the work-from-home revolution, are coming to terms with the first signs of distress. While a number of buildings were struggling to make debt payments even before Covid, home offices and hybrid work schedules have accelerated...

RSK: I think everyone knew it but were afraid to say it. But it is true. Even if companies are still paying the rent for now, when those leases come up many will down size leaving vacant space. Value is based on many factors but income is probably the most valued...

- - Volume: 10 - WEEK: 20 Date: 5/10/2022 7:43:14 AM -