Bloomberg Law
June 11, 2021, 12:11 PM

DISTRESSED DAILY: Office Future Hangs Over Real Estate Recovery

Allison McNeely
Allison McNeely
Bloomberg News

While restaurants and hotels have come roaring back as everyday life resumes, recovery in the office sector is still uncertain, according to a CMBS research firm.

Office occupancy has declined in big cities as workers have spent the past year at home. In April, the average rate for urban and suburban offices bundled into CMBS dropped below 90% for the first time since 2018, according to Trepp. At the beginning of March 2020, the overall office occupancy rate, including medical offices, was 91.3%.

Among the hardest-hit areas include Kansas City and Washington, D.C., where nearly 30% of office properties have ...