Skip to main content

American offices are half-empty. That could be the next big risk for banks. (CRE. )

Analysis by , CNN

"LondonCNN — 

From Dallas and Minneapolis to New York and Los Angeles, offices sit vacant or underused, showing the staying power of the work-from-home era. But clear desks and quiet break rooms aren’t just a headache for bosses eager to gather teams in person."

"Investors and regulators, on high alert for signs of trouble in the financial system following recent bank failures, are now homing in on the downturn in the $20 trillion US commercial real estate market."

"America’s top banker, JPMorgan Chase (JPM) CEO Jamie Dimon, told CNN Thursday that he couldn’t be sure whether more banks will fail this year. Yet he was quick to point out that the current situation was very different to the 2008 global financial crisis, when there were “hundreds of institutions around the world with far too much leverage.”

"You have fundamentals under pressure from work from home at a time when lending is less available than [it has been] over the last decade,” said Rich Hill, head of real estate strategy at Cohen & Steers. “Those two factors will lead to a pretty significant decline in valuations.”

"Earlier this year, a landlord owned by asset manager PIMCO defaulted on nearly $2 billion in debt for seven office buildings in San Francisco, New York City, Boston and Jersey City."

"Signature Bank (SBNY) had the tenth biggest portfolio of commercial real estate loans in the United States at the start of the year, according to Trepp. First Republic (FRC), which received a $30 billion lifeline last month from JPMorgan Chase and other major banks, had the ninth largest."

"About $270 billion in commercial real estate loans held by banks will come due in 2023, according to Trepp. Roughly $80 billion, nearly a third, are on office properties."

"The worst outcome, according to Neil Shearing, chief economist at Capital Economics, is that a “doom loop” develops. Questions about the health of banks with sizable exposures to commercial real estate loans cause customers to pull deposits. That forces lenders to demand repayment — exacerbating the sector’s downturn and further damaging the banks’ financial position. That triggers more deposit outflows in a “vicious cycle.”

SOURCE:

https://www.google.com/amp/s/amp.cnn.com/cnn/2023/04/10/business/commercial-real-estate-banks-offices/index.html



Comments

Popular posts from this blog

🕯️ The Day Tel Aviv Trembled: Iran’s Missiles and the Crumbling Illusion of Invincibility

  By ainnbeen.blogspot.com For decades, Israel projected an image of invulnerability— a fortress powered by American billions , state-of-the-art missile defenses, and a myth of unmatched military precision. But in a chilling shift, that illusion is cracking. As Iranian missiles rained down on Tel Aviv, not through proxies but directly from Tehran, the world witnessed what was once unthinkable: the heart of Israel under direct attack, air-raid sirens wailing , embassies shuttered , and diplomats fleeing. This isn’t just a military development —it’s a political earthquake . And it exposes deep fractures in Israel’s defense doctrine, regional strategy, and perhaps most importantly —its belief that it could strike without consequence. 🔥 1. Iranian Missiles Hit Tel Aviv: The Strike That Shattered Complacency In what appears to be retaliation for Israel’s continuous sabotage campaigns — nuclear facility strikes , assassinations of IRGC commanders — Iran unleashed a salvo...

🛡️ Israel's Air-Defense Under Pressure: A Rising Iranian Hypersonic Threat

  🛡️ Israel’s Iron Dome May Hold—But for How Long? As Iran expands its missile arsenal with supersonic and hypersonic capabilities, Israel’s once-famed air defense now faces a triple crisis: strategic, economic, and societal . While the world watches air battles unfold in the skies, the deeper vulnerabilities lie beneath—in the nation's fatigued population, overstretched military, and fragile economic base. 🚨 Strategic Threat: The Iranian Hypersonic Surge Iran reportedly maintains over 3,000 ballistic missiles , including: Fattah-1 & Fattah-2 : Hypersonic glide vehicles (Mach 13–15+). Khorramshahr-4 & Qassem Bassir : With maneuverable warheads and terminal speeds that can overwhelm Israel’s Arrow and David’s Sling systems. Thousands of SRBMs (Zolfaghar, Qiam, Fateh variants) capable of saturating Iron Dome through sheer volume. While Israel’s Iron Dome remains highly effective against traditional threats (85–90% interception rate), hypersonic missiles introd...

🇮🇱🎭 When Israel Speaks, America obeys: From Truman’s Nod to Trump’s Prayer Rug 🇺🇸🛐

  By Ainnbeen.blogspot.com Welcome to the Middle East’s longest-running tragicomedy: " The Chosen Puppet Show." From 1948 to 2025 , it’s been a masterclass in manipulation. But don’t take my word for it—just ask Israel’s most recent “ambassador” to Washington, Mike Huckabee , who now speaks not just for Israel, but apparently for God Himself. Yes, you read that right. In a message that sounds more like a Sunday sermon than a diplomatic dispatch, Huckabee called Trump “ the most consequential president in a century – maybe ever.” And why? Because he’s listening to “the voice of God”...on Israel policy . Oh, we’re doing this again. Because when Israel wants billions in weapons, moral cover for war crimes, or a fresh round of sanctions against whichever Muslim country is next on the hit list—there’s always a “divinely inspired” American president standing by. Let’s rewind a bit. 🎬 Scene One: The Truman Trick In 1948, President Harry Truman recognized Israel eleven...

🇮🇷🇺🇸 Iran’s Missile Strikes on U.S. Bases | June 23, 2025 Operation Tidings of Victory

📍 What Happened On the evening of June 23 , around 8:00 p.m. local time (17:00 UTC) , Iran launched a coordinated missile attack on multiple U.S. military sites: Al Udeid Air Base, Qatar : ~10 missiles launched. Explosions were heard over Doha. Qatar’s air defense systems intercepted several. U.S. outposts in Iraq : Specific bases were hit; names have not been officially disclosed. Mentions of the U.S. Consulate in Erbil and sites in Kuwait : Reports are unconfirmed regarding direct hits in Kuwait. 📉 Damage & Casualties No confirmed U.S. fatalities or serious injuries reported. Damage appears limited to infrastructure: some runways, radar systems, tents, and non-critical equipment were affected. Qatar successfully intercepted multiple missiles. No civilian injuries have been reported in Doha. In Iraq and Kuwait , initial assessments indicate no significant troop harm . 📌 Background & Context The attack is seen as a retaliatory strike by Iran for...

🇮🇱 From Iron Dome to Iron Walls: The Israeli Exodus Nobody Wants to Talk About

So, who’s left in Israel? The streets of Tel Aviv echo not with music, but with the low hum of anxiety. Airports aren’t gateways to vacation anymore—they're lifeboats. Flight boards have become emotional barometers, each cancellation another reminder that “the most powerful military in the Middle East” can’t guarantee what every child needs to sleep at night: safety. Let’s call it what it is— a nation in psychological retreat . More than half a million Israelis packed their bags during the Gaza war. Not for business. Not for pleasure. Just... gone. Vanished into foreign time zones while their homeland burned in moral, political, and literal fire. Another 82,000 followed in 2024. That’s not emigration. That’s evacuation—with a side of therapy bills. And now? With Iran turning up the heat and skies darkened by more than just missiles, the silence is deafening. Bomb shelters double as nurseries. Children draw their dreams on concrete walls. And adults—adults are Googling “how to ...