The commercial real estate sector is facing significant challenges, with empty offices potentially wiping out $250 billion in property value. Office tower owners in Toronto are aggressively trying to off-load buildings, which could lead to conversions and demolitions. The Federal Reserve has indicated that large banks could withstand a 40% decline in commercial real estate values. Moody's predicts that 24% of office towers will be vacant by 2026. The sustainability of selling commercial real estate at 60%-90% losses raises concerns about the stability of banks holding this debt.
How much longer can commercial real estate in major urban areas be sold at 60%-90% losses before the banks holding this debt collapse? https://t.co/Jnpqfy3roV
Moody's Predicts 24% Of Office Towers Will Be Vacant By 2026 https://t.co/JuGFOxwaMV
Fed: Large Banks Could Withstand 40% Decline In CRE Values https://t.co/AB6uv5Omjw
Office tower owners 'aggressively' trying to off-load Toronto buildings — possibly leading to conversions and demolitions https://t.co/BPhmd7nMBD
Empty Offices Risk Wiping Out $250 Billion in Commercial Property Value https://t.co/k4WBi4S97u