https://www.axios.com/2023/03/22/remote-work-wf-office-rents-decline

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11 hours ago - Economy & Business

Remote work is starting to hit office rents

Matt Phillips

  * Matt Phillips, author of Axios Markets

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Data: CBRE Econometric Advisors; Moody's; Chart: Axios VisualsData:
CBRE Econometric Advisors; Moody's; Chart: Axios Visuals
Data: CBRE Econometric Advisors; Moody's; Chart: Axios Visuals

After a lag, the work-from-home revolution is finally starting to
show up in the data for office building rental rates.

State of play: Major markets like San Francisco and Manhattan -- where
long commute times seem to be driving the durability of the WFH
lifestyle -- have been hit the hardest.

  * On the other hand, markets like Raleigh, Boston and Minneapolis --
    which have a higher concentration of health services, biotech and
    life science employment -- seem to be faring well. (It's hard to
    do laboratory research from your home office.)

What we're watching: Whether the issues in the office market worsen
due to balance-sheet stress at regional banks.

  * Small and midsized banks (those not among the top 25) currently
    hold 67.2% of all outstanding commercial real estate loans, Axios
    recently reported.

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