As COVID-19 continues to wreak havoc on all aspects of American life, that new reality is also playing out in the world of the office property sector.
According to an Aug. 17 report from Moody's Analytics, the office property sector had already been experiencing "downward pressure on the usage intensity of office space even before the COVID-19 crisis." But, the report says, a country-wide shift towards individuals working remote because of the pandemic is expected to hit the office property sector "particularly hard in the coming years."
The office sector—due in large part to the coronavirus—is also expected to incur stress in effective rents. The report says effective rents will fall 10.4% nationally this year and as much as 21% in New York and other larger markets.
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Robert Storace
Robert Storace covers legal trends, lawsuits and analysis for the Connecticut Law Tribune. Follow him on Twitter @RobertSCTLaw or reach him at 203-437-5950.
