The Problems With Commercial Real Estate

The amount of empty office space has climbed steadily since the start of the pandemic in March 2020. Valuations for offices and factories have fallen almost as much over the last year as the 20 month price decline that began in September 2007. The majority of the $1.2 trillion in US office space debt is owed to regional banks who have been more aggressive in this style of lending than large, too big to fail banks. If office landlords can't make their debt payments, these banks would end up owning the commercial properties and would need to sell them.