The office sector is navigating tough times as office utilization stagnates, values drop and interest rates stay high, according to the latest Commercial Edge U.S. office market report.
Over $260 billion in office loans have recently matured or are set to mature by the end of 2026. These loans are mostly concentrated in top-rated properties and city centers, with 62.6% in urban submarkets and 71.4% in Class A buildings.
Office delinquencies are climbing, with $1.87 billion of office loans newly delinquent in June, pushing the sector’s delinquency rate to 7.5%.
Atlanta holds the highest concentration of loan maturities at 48.3% of its loan volume coming due, followed by Denver (41.8%), Nashville (41.7%), Chicago (40.7%), and the Twin Cities (39.2%).
Seattle (23.2%) and Denver (22.1%) also ranked among the top five U.S. office markets for highest vacancy rates in June.
For more in-depth market insights on the top 25 office markets, click here: https://www.commercialedge.com/blog/national-office-report/
