The next big potential risk to the U.S. economy may be lurking in corporate towers across the country’s downtown districts.
With many people still working from home, companies are cutting back on so much office space that it threatens to unleash even more headwinds for the U.S. economy.
An unraveling of the office sector spells trouble not only for banks that are owed an estimated $1.2 trillion in outstanding office loan debt, but also for countless small businesses that depend on white-collar customers as well as cities that benefit from the property taxes tied to office buildings.
It’s a troubling development for the commercial real estate industry at a time when the U.S. economy is already showing signs of stress and maybe even a recession.
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https://www.opb.org/article/2023/05/16/a-lot-of-offices-are-still-empty-and-it-s-becoming-a-major-risk-for-the-economy/
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