Companies will likely continue to grapple with their future plans for the office long past when a Covid-19 vaccine has been widely distributed. Questions about whether employees will work remotely permanently, whether a hybrid model is best and maintaining corporate culture will dominate these decisions.
As office occupiers work through these questions, office CMBS will likely continue to feel the strain.
According to Trepp, the November delinquency rate for office loans was 2.27%, a drop of 22 basis points from October. Trepp's Manus Clancy and Joe McBride both believe that this rate will rise through next year, with the increase in work from home orders and the future of office being uncertain globally.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
