Thursday, May 30th

Last update06:37:49 AM GMT

You are here News Economy Wall Street braces for commercial real estate time bomb

Wall Street braces for commercial real estate time bomb

E-mail Print PDF
Jerome Powell

Remarks last week by Federal Reserve Chair Jerome Powell about a spate of coming bank failures related to the faltering commercial real estate sector have sent shockwaves through the financial world, leading some investors to run for cover and others to look for opportunities.

With the typical U.S. commercial lease ranging from three to five years, the clock is ticking for office and retail property owners and their creditors in the financial sector as remote work has taken off and prompted changes in urban land use.

Office vacancy rates have climbed sharply in the wake of the pandemic after falling steadily in the decade before, reaching a record 13.1 percent last year, according to data from the Treasury Department’s Financial Stability Oversight Council (FSOC), citing analytics firm CoStar.

“At the midpoint of the third quarter of 2023, the national office vacancy rate hit a record high of 13.2 percent, a full 370 basis points higher than at the end of 2019,” CoStar analyst Phil Mobley wrote in a third-quarter analysis.



Most Recent Related Stories...

The Dow Jones hits 40,000 for the first time. What to know about this major milestone

DJ hits 40,000 for the first time The Dow Jones Industrial Average surpassed 40,000 points on Thursday for the first time ever, signaling...

Biden hails ‘America’s comeback’ as 303,000 new jobs in March beat forecast

Biden hailed new job growth numbers The US workforce added 303,000 jobs last month, far more than expected and the 39th straight...

Trump's Truth Social shares are plunging again, erasing billions of dollars in value

Truth Social shares fall again About two weeks since its meteoric debut, shares of Truth Social are slumping, wiping out billions...

U.S. Employers Added Robust 303,000 Jobs In March In Sign Of Economic Strength

Labor Dept.America’s employers delivered another outpouring of jobs in March, adding a sizzling 303,000 workers to their...
America's # 1 Enemy
Tee Shirt
& Help Support!
TVNL Tee Shirt
Conserve our Planet
& Help Support!
Get your 9/11 & Media
Deception Dollars
& Help Support!
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!