Cities that converted empty office buildings into housing face these important questions
June 16, 2024
It took a global pandemic to convince American businesses that their employees could work productively from home or a favorite coffee shop. Post-COVID-19, employers are struggling to find the right balance of in-office and remote work. However, hybrid work is likely here to stay, at least for a segment of workers.
This shift isn’t just changing lifestyles—it’s also affecting commercial spaces. Office vacancy rates post-COVID-19 shot up almost overnight, and they remain near 20% nationwide, the highest rate since 1979 as tenants downsize in place or relocate. This workspace surplus is putting pressure on existing development loans and leading to defaults or creative refinancing in a market already plagued by higher interest rates.