Office Landlords Need to Beware of These Risks

The burgeoning WFH trend shouldn’t be the only thing troubling the office asset class, according to a new report from Green Street. Slipping job growth and an uptick in real interest rates pose significant risk to the sector, and while an increase in remote work remains enemy number one for the foreseeable future, a score of other factors are also at play.

The Green Street report notes that the outlook for job growth in office-dominant industries—likely driven at least in part by increased automation—is less favorable than in years past, and a slowdown in “TAMI” sectors (tech, advertising, media, and information industries) has further decreased office demand.