In a report released yesterday, the FDIC cited layoffs at Boeing, slowing employment growth and stock market volatility as cause for concern in Seattle, one of 13 it believes are at risk for overbuilding. Other cities on the list include Portland, Salt Lake City, Phoenix, Sacramento, Denver and Las Vegas.
The FDIC's primary concern is that banks could take a financial bath should overbuilding, high vacancy rates and low rental rates force developers to default on real estate loans. "Office adsorption rates, which are closely tied to business expansion, could decrease if companies become constrained by labor shortages or choose to slow their growth in the face of more volatile capital markets," the report states.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
