“Office properties – already facing financing hardships and values – now face a potential new wave of unexpected vacancies,” Moody’s economist Ermengarde Jabir said in a report Tuesday.
In the worst case scenario, it may prompt landlord defaults on loans or mortgages, which could more broadly affect the banking system and hit city tax revenues even further. The loss of WeWork will increase vacancies, might lower rent for tenants, meaning less cash for some landlords already struggling to make debt payments in a high interest rate environment, commercial real estate experts say. WeWork’s bankruptcy comes as more than one-fifth of offices across the United States remain vacant, according to commercial real estate giant JLL. A yurt listed by Radious in Portland showing a desk and a meeting space.
