Will Office Real Estate Infrastructure Collapse?

The video discusses the decline in demand for office space due to hybrid work and layoffs, leading to high vacancy rates. McKinsey predicts a significant loss in office building value by 2030. Investors face challenges with refinancing due to rising interest rates and maturing loans. Despite this, there are signs of recovery in office leasing, though still below pre-pandemic levels.

What has contributed to the decrease in demand for office space?

• Increase in remote work and layoffs

• Increase in office rental prices

• Rise in construction costs

• Decrease in urban population

What percentage of office space in the US was vacant in the first quarter of 2023?

• 10.5%

• 15.3%

• 12.9%

• 9.8%

How much value could be lost from global office buildings by 2030 due to remote work?

• $500 billion

• $800 billion

• $600 billion

• $1 trillion

What is making it difficult for investors to refinance office buildings?

• Decreasing property values

• Skyrocketing interest rates

• Lack of available loans

• Increased competition

By what percentage did office leasing rebound from the first to second quarter?

• 7.7%

• 6.3%

• 8.2%

• 5.5%