As the hailstones of higher interest rates, banking weakness and unease, and uncertainty about work-from-home and hybrid models rapidly fall, many in CRE thought they had found an answer to the office conundrum. Go mixed use.
Cities that combined residential, office, and leisure as soon as possible into mixed-use will have more compelling offerings for people and companies that are looking for a new location, Moody's Analytics CRE recently noted.
Perhaps, but a recent Trepp analysis may undermine presumption because recent data show mixed-use increasingly hitting the special servicing skids. If these combinations of office, residential, and retail aren't showing greater debt service resilience, maybe they aren't quite the fix as perception has suggested.
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