The shift to remote work, accelerated by the pandemic, has changed the dynamics of office space demand. Companies are adopting hybrid models, reducing the need for extensive office space. This trend, coupled with the financial strain on businesses during the pandemic, has led to a surplus of vacant office spaces. The potential oversupply, paired with changing work preferences, could impact the value of office space assets. Investors should closely monitor these trends and consider diversifying their portfolios to mitigate potential risks associated with the office space asset class.
Maybe, just maybe there are already a lot of banks underwater?