The Cities With the Most Class B Office Pain

As the office market continues with its well-known struggles, many landlords are facing maturing loans with expiration dates of between now and the next three years or by year-end 2026. Altogether, more than 19% of office properties are experiencing this quandary, according to CommercialEdge.

In the past, many companies simply renewed their leases, but the new financial headwinds and expiring leases are becoming a potential catalyst for markets across the country to be disrupted, according to the report. The loans on office buildings set to expire are significant, representing 1.3 billion square feet.  The problem is compounded for certain properties—namely Class B and C—which are considered functionally obsolete due to their age as shiny new Class A towers with better layouts, more amenities and possibly more outdoor space tempt workers to return to work.