It used to be that letters from the federal government would cause concern over a potential draft notice or tax audit. Add in a new one for commercial real estate: worry that they won't need that office building any more.

A letter this week to President Biden from The Real Estate Roundtable — backing firms including Brookfield Properties, Blackstone, Empire State Realty Trust, Starwood Capital, as well as multiple major banks and CRE professional organizations — emphasized just how concerned many in the industry have become.

"We therefore respectfully urge you to direct federal agencies to enhance their consideration of the impact of agency employee remote working on communities, surrounding small employers, transit systems, local tax bases and other important considerations, along with the direct effect on governmental service delivery and labor productivity. In addition, we ask for your support of legislation to facilitate the increased conversion of underutilized office and other commercial real estate to much-needed housing," the letter read.