Office Loan Losses Could Reach 8%

How empty are offices in major cities? Not everyone agrees on the exact numbers, but vacancy rates fall between 15% and 19% nationally. Numbers from JLL Research pegged the national office vacancy rate for metro cities at 18.7% at the end of 2022. San Francisco’s was the highest at 26.4%. (See chart.)

The weekly worker occupancy report from Kastle Sytems, a building-access swipe card provider, shows the number of workers in offices in the 10 largest U.S. cities plateauing at about 49% the past few weeks. ..
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RSK: It is not all smoke and mirrors ...once you clear the smoke you can see that well positioned and higher class buildings will survive. But there will be some losses.