Office Space

As workers settle into hybrid work routines, some employers are upgrading to nicer spaces with a smaller footprint.

Some types of CRE are hurting more than others. A steep downturn could cause pain to regional banks as well as property owners.

A report from Moody’s Analytics finds there's trouble ahead, but it's more nuanced than a banking collapse due to empty offices.

Amid high interest rates and vacancy rates, lenders and regulators are concerned about the fallout when borrowers renew their loans.

Vertical farms “can take the spaces that are hard to rent,” explains real estate developer Brian Friedman.

More than 3% of such loans are now delinquent.

Converting offices into apartments comes with challenges.

In New York City, daily office vacancy rates average about 50%. So it and other cities are trying to attract more visitors by converting office space to housing, improving public transit, and making their streets a destination.

But adaptive reuse isn’t as simple as swapping out cubicles for beds. Developers often need to charge a lot to make conversions worthwhile.

The commercial real estate market is being forced to adapt. Some buildings offer leasing incentives, others may convert to a different use.