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First Remote Working. Now a Looming Recession. What's Next for Troubled Office Buildings?

Although Current Distress Levels Are Low, Office Properties Backed by Nonperforming CMBS Loans May Signal Potential Defaults
The office sector is still reeling from the popularity of remote work, which means it will likely be more affected than other property types if a recession were to hit. (Getty Images)
The office sector is still reeling from the popularity of remote work, which means it will likely be more affected than other property types if a recession were to hit. (Getty Images)
By Nancy Muscatello
CoStar Advisory Services
October 7, 2022 | 3:09 P.M.

Persistently higher rates of remote working since the pandemic have plagued the office market, acting as a governor on demand growth and leading to higher vacancies. Now, the declining macroeconomic environment presents another headwind for the property sector.

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