by AHTRA ELNASHAR | The National DeskOffice space at The Grove at Schneider National, May 17, 2023. Trading in florescent office lights for the comfort of home, by 2025, one in five Americans are expected to work remotely, according to the Census Bureau–a trend that terrifies the commercial real estate market and the banks that finance increasingly empty office buildings.
"Financial supervisors must continue to be vigilant. Rising delinquencies and defaults in the sector could restrict lending and trigger a vicious cycle of tighter funding conditions, falling commercial property prices, and losses for financial intermediaries with adverse spillovers to the rest of the economy," the researchers wrote.
“If you have a recession, yes it will get worse. If we don’t have a recession, I think most people will be able to muddle through this, you know, refinance, put more equity in. And of course when you talk about defaults being higher, part of that's just a normalization process," Dimon said.