https://fortune.com/2024/02/06/powell-warns-impact-of-commercial-real-estate-on-banking/
In the aftermath of the pandemic, many companies adopted a completely remote or hybrid work model, which has led companies large and small to shed a great deal of their office footprint. Take Fannie Mae and Wells Fargo, which both recently let go of hundreds of thousands of square feet of office space in Washington, D.C., and Raleigh, N.C., respectively.
That’s just one example of a reeling commercial real estate sector, where there could be 1 billion square feet of unused office space by the start of the new decade, according to Cushman & Wakefield data. And it’s likely to worsen as loans mature and more leases come to the end of their term.
