About $24.8bn of US office buildings were in distress at the end of the second quarter.
The figure is a rise of 36% from the first quarter, according to numbers from MSCI Real Assets.
At the end of June, $22.7bn of retail property – including malls – and $13.5bn of hotels were in distress. The total for all troubled commercial properties was almost $72bn, up 13% from the first quarter.
“The office sector was responsible for the largest share of marketwide distress,” the report said, which is based on filings for bankruptcies, defaults and other publicly reported property issues.
“It’s the first time since 2018 that neither the retail nor hotel sector was the biggest contributor.”
MSCI identified an additional $162bn of properties in potential distress, with problems such as delinquent loan payments, high vacancies or maturing debt.
To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews
