Hybrid Work Trend Leaves Office Buildings Vacant, Real Estate Industry in Crisis

As office occupancy rates plummet, real estate companies grapple with loan repayments and the future of cities hangs in the balance.

Office occupancy rates have hit all-time lows due to the shift to hybrid work, leaving more than 95 million square feet of New York office space currently unoccupied.
Real estate companies are struggling to repay loans, with $1.5 trillion in commercial real estate loans set to expire in the next two years.
The price of office buildings has reportedly dropped by as much as 40% since the pandemic began.
Office loan delinquency rates were around 6% in December, nearly four times higher than a year ago.
Some developers are converting vacant office buildings into apartments, but less than half of New York office space is zoned for conversion.