In many U.S. cities, once-bustling office buildings now stand eerily quiet. Higher office vacancies are not only reducing net operating income for building owners but also increasing the percentage of loans that are 90+ days overdue or have been marked for reduced repayment. This noncurrent loan rate has risen to 4.5%, the highest since Q4 2013.
Nareit reports that REIT-owned office properties have seen three straight quarters of declining same-store net operating income. This significant drop is contributing to higher noncurrent loan rates at major banks, catching the attention of the Federal Deposit Insurance Corp.
For more information about New Jersey, Pennsylvania or New York health care, industrial, retail, office, land or other commercial properties, please call 856-857-6300 or send an email to info@wolfcre.com. WCRE, is a leading New Jersey, Pennsylvania, and New York commercial real estate brokerage firm that specializes in healthcare, office, retail, land, industrial, and investment properties.
WCRE is a full-service CORFAC International brokerage, and advisory firm that provides a full range commercial real estate listings, services and property management services for landlords, owners, investors, tenants and more.
As experts in tri-state region, the WCRE team provides ongoing detailed information about commercial properties to our clients and prospects to help them achieve their commercial real estate goals.
