Office Vacancies Send Real-Estate Investors to the Exits
Bond prices for commercial mortgages have recently dropped to their lowest levels since the early days of the pandemic, indicating a growing concern for the future of the market.
The prices of bonds backed up by commercial mortgages dropped recently to levels that have not been seen since the beginning of the pandemic. This indicates a growing threat to the economy stemming
office vacancies
Interest rates are rising.
A small corner of the U.S. bond market, so-called commercial-mortgage-backed securities, or CMBS, have taken a beating for over a year owing to fears that owners of business parks, high-rises and other office properties could default on loans extended at a time of different work habits and lower financing costs.