The Decline of the Office Sector

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There have been some cases where prominent participants in the market have given assets back to their lenders before they go through the more painful process of a default and foreclosure. But we are very early in this cycle. Those delinquency rates are still low. And what that signals to us is that we're still fairly early in the process of having to manage real distress in the office sector.

As distress descends on commercial real estate, Deconstruct analyzes how past financial crises can inform how borrowers, banks and policy makers handle this down cycle. Guests include: Bob Knakal, JLL Senior Managing Director, Head of New York Private Capital Group; and Sam Chandan, Professor of Finance and Director of the Chao-Hon Chen Institute for Global Real Estate Finance at the New York University Stern School of Business.