Since early April, hundreds of office and apartment mortgage payers have skipped out on payments equating $7.1 billion.
Now, the future of the office and multifamily markets depends on the recovery of the economy, which seems far-fetched at this point. This week, the Congressional Budget Office said that unemployment is expected to hit 15% in the second quarter.
Even once restrictions ease up, office operators are unsure if office occupancy will rebound to where it was. Amol Sarva, CEO of flexible office firm Knotel, predicted that occupancy would float around 60% during a recent webinar.
With millions of U.S. workers working from home, employers may keep it that way for at least a part of the time moving forward.