The brutal reality of plunging office values is here

While prices for offices have tumbled in financial centres from London to Tokyo, US cities have seen particularly big declines.

Natalie Wong and Patrick Clark

Feb 19, 2024 – 9.49am

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The shakeout in the $US20 trillion ($30.6 trillion) US commercial real estate market has long been delayed for a simple reason: No one could figure out just how much properties were worth. And, more crucially, few wanted to.

Since the COVID-19 pandemic upended the use of real estate around the world, lenders have had little incentive to get tough on borrowers squeezed by soaring interest rates and take on loans that had lost value.

Bloomberg Wealth