Part 6/8:
The challenges extend to the commercial real estate sector as well. Struggling office buildings, particularly in cities like Denver and Portland, are witnessing severe depreciation. A recent transaction in Denver saw buildings selling for just over 90% less than their estimated value from 2019, leading to concerns about the long-term implications on metropolitan economies. Higher vacancy rates in downtown office spaces reflect a shift in demand that may not revert to pre-pandemic levels.