The plunge in US office values could match or exceed 2008’s real estate fallout, as prices have yet to bottom out, Fitch Ratings wrote in a note on Wednesday, Business Insider reported.
Office values have dropped an estimated 35% so far this cycle. While that’s still above the 47% plunge witnessed during the Great Financial Crisis, the latest situation offers no reason to expect the descent to slow, it said.
Instead, current values are near a four-year low, and Fitch expects any future recovery to be more protracted than what followed the 2008 crash. Extending the timeline is the endurance of remote work trends, bleak refinancing conditions, and significantly higher interest rates, Business Insider reported.