Will a Sinking Office Market Drag Down Multifamily? episode artwork

EPISODE · Jun 23, 2023 · 1H 16M

Will a Sinking Office Market Drag Down Multifamily?

from The Gray Report Podcast · host Spencer Gray

With office real estate suffering as remote working arrangements persist and drive down demand for office space, there is increasing attention on the broader impacts and knock-on effects related to the shift away from the office. Commercial real estate lenders have yet to panic, even in this environment of high interest rates and low transaction volumes, and while multifamily valuations have also suffered due to high rates, the same work-from-home factors that are hurting office CRE performance could support more consistently elevated values for residential real estate. Sources covered in this episode: Commercial Property Executive: “Servicing, Defaults Dominate CREFC Discussion” - https://www.commercialsearch.com/news/servicing-defaults-dominate-crefc-discussion/ The New York Times: “Return to Office Enters the Desperation Phase” - https://www.nytimes.com/2023/06/20/business/return-to-office-remote-work.html Moody’s Analytics: “Capital Market Quick Take: What Does It Take to See a Peak-to-Trough Office Value Decline of 40%?” https://cre.moodysanalytics.com/insights/cre-news/capital-market-quick-take-what-does-it-take-to-see-a-peak-to-trough-office-value-decline-of-40/ John Burns Research and Consulting: “Will the strongest housing demand surge in 20 years continue?” - https://jbrec.com/insights/will-strongest-housing-demand-surge-continue/ Axios: “America's housing shortage is keeping home prices high” - https://www.axios.com/2023/06/20/housing-shortage-prices-high Indiana Business Review: “Uncertainty in the national real estate market” - https://www.ibrc.indiana.edu/ibr/2023/summer/article2.html For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest.

With office real estate suffering as remote working arrangements persist and drive down demand for office space, there is increasing attention on the broader impacts and knock-on effects related to the shift away from the office. Commercial real estate lenders have yet to panic, even in this environment of high interest rates and low transaction volumes, and while multifamily valuations have also suffered due to high rates, the same work-from-home factors that are hurting office CRE performance could support more consistently elevated values for residential real estate. Sources covered in this episode: Commercial Property Executive: “Servicing, Defaults Dominate CREFC Discussion” - https://www.commercialsearch.com/news/servicing-defaults-dominate-crefc-discussion/ The New York Times: “Return to Office Enters the Desperation Phase” - https://www.nytimes.com/2023/06/20/business/return-to-office-remote-work.html Moody’s Analytics: “Capital Market Quick Take: What Does It Take to See a Peak-to-Trough Office Value Decline of 40%?” https://cre.moodysanalytics.com/insights/cre-news/capital-market-quick-take-what-does-it-take-to-see-a-peak-to-trough-office-value-decline-of-40/ John Burns Research and Consulting: “Will the strongest housing demand surge in 20 years continue?” - https://jbrec.com/insights/will-strongest-housing-demand-surge-continue/ Axios: “America's housing shortage is keeping home prices high” - https://www.axios.com/2023/06/20/housing-shortage-prices-high Indiana Business Review: “Uncertainty in the national real estate market” - https://www.ibrc.indiana.edu/ibr/2023/summer/article2.html For the latest multifamily news from across the internet, visit the Gray Report website: ⁠https://www.grayreport.com/⁠ Sign up for our free multifamily newsletter here: ⁠https://www.graycapitalllc.com/newsletter⁠ DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest.

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Will a Sinking Office Market Drag Down Multifamily?

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This episode was published on June 23, 2023.

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With office real estate suffering as remote working arrangements persist and drive down demand for office space, there is increasing attention on the broader impacts and knock-on effects related to the shift away from the office. Commercial real...

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