Recent negative news regarding the office sector is inescapable, according to a new report from KBRA.
"CRE Secular Trends: A Long-Term Transformation for Office?" explains that the prevalence and persistence of hybrid work arrangements, along with rising interest rates, a surge in technology layoffs, and a murky economic outlook, present significant headwinds for the office sector in the short term.
Employers are seeking higher-quality space with modern amenities and improved safety features, which results in weakening demand and lower valuations for older, lower-quality buildings.
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