Office Buildings in Big Cities Most at Risk: Goldman Sachs

Originally published on April 25, 2023, for Goldman Sachs.

Big office buildings in large U.S. cities are the most at risk from turmoil in commercial real estate, according to Goldman Sachs Research. There are signs that smaller offices in suburbs, as well as newer buildings in central businesses districts, could be more insulated from the stress.

Office buildings in central metropolitan areas have been the hardest hit by losses in occupancy since the pandemic as more employees work from home. By contrast, suburban offices, and medical offices in particular, have been less impacted, especially in smaller American cities, Goldman Sachs Research analyst Caitlin Burrows writes in the team’s report. Newer office properties in central business districts have been the most insulated from occupancy losses, she writes.

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