Higher interest rates and softer demand – exacerbated by the persistence of the work-from-home trend – could send some office building values tumbling another 20 per cent lower, according to a survey of analysts and economists by The Australian Financial Review.

While all commercial property classes will be exposed to higher rates and bond yields – the 10-year government bond yield is a key determinant for commercial real valuations – the office sector was seen as most vulnerable, according to the panel of nine experts.