Overview

• 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.