Key Points
According to data from real-estate consulting firm Colliers, the U.S. vacancy rate has risen from 11% in late 2019 to 17% today, higher than at any point in the 2008 global financial crisis..
Of the $35.8 billion of office loans that came due in the commercial mortgage-backed securities market last year, only a quarter were paid off in full, according to data from real-estate analytics firm CRED iQ..
For instance, of the roughly 600 defaulted CMBS office loans sent to a special servicer over the past two years, lenders have realized a loss on just five, according to CRED iQ analysis..
Distressed-debt investors might slow the pace of forced sales in a handful of cases, but the office sectors need for finance will soon massively outstrip supply..
Offices will be the buying opportunity of our generation," provided investors pick the right locations, says Mike McDonald, a senior managing director at real-estate firm JLL..
