Cracks Emerging in U.S. Office Sector: Loan Defaults Fuel Concern of More Pain Ahead

UrbanLand, Mar. 13, 2023–Beth Mattson-Teig
According to the Mortgage Bankers Association, office is the second largest category behind multifamily with roughly $750 billion in mortgages held by both bank and non-bank lenders. Although all property types are going through transitions right now due to higher interest rates and a slowing economy, office is really getting the most focus in terms of what supply and demand looks like going forward, notes Jamie Woodwell, vice president in the research and economics group at MBA.