US office vacancy rate rises to 19.8% in 3 months, highest ever. The spread of telecommuting due to the coronavirus pandemic is a major factor, which has led to a decline in the prices of commercial real estate.
In the background, there is a movement among American companies to reduce office space as telecomm commuting becomes established. The high office vacancy rates reduces rental income, which is a factor in the decline in commercialreal estate prices. In addition, rising interest rates have increased borrowing costs, and there are simmering concerns at some banks that the costs of disposing of non-performing loans have ballooned.