A potential commercial real estate crash is coming because commercial office space in the US has the lowest occupancy rates since vacancies have been measured. Less than half of all office space buildings are occupied in major cities because of work from home policies. Despite business returning to normal, post-pandemic workers are still largely working from home or non-office locations.
Workers in tech factories and other locations where being present is required is still high, but office workers, usually in high rises in cities have plummeted. This bodes poorly for office building owners in cities like San Francisco and New York where a substantial number of office space isn’t being used and the future looks bleak for these cities including the high likelyhood of a commercial real estate crash for commercial offices.
The vacancy rates in cities have affected not only those buildings but the small businesses as well as the residential living in those cities, namely San Francisco and New York which would likely be the most likely to crash.