has aggressively raised interest rates, increasing the cost of financing commercial real estate at a time when demand is also shrinking, which is having an impact on rents.

Investors are expecting a collapse in commercial real estate prices, according to a recent survey. Investors are preparing for a possible crisis caused by a default on $1.5 trillion in debt that will reach its maturity by the end of 2025. According to Trepp, about $270 billion of commercial loans are due to be repaid by banks in 2023. Morgan Stanley analysts said commercial real estate will need to repay debts over the next four years, peaking at $550 billion in 2027.

Earlier this month, a study conducted by economists''from NYU Stern Business School, Columbia Business School and the National Bureau of Economic Research, showed that the unemployment rate has reached its highest level in 30 years in many U.S. cities. In New York City, the vacancy rate was 22.2 percent in the first quarter of 2023. Office buildings in cities like San Francisco have remained empty in the era of remote work.