Companies seek new office buildings, shun ‘aging’ ones!
This has led to an uptick in the default rate for CMBS backed by ‘buildings with large vacancies and insufficient cash flow to pay back their debt’!
The default rate in December hit 2.53%, up from 1.81% in November.
Compounding the problem is the fact that companies ‘are now able to afford the higher-end space by shrinking their leased footprint because of the remote work shift and as the owners of newer buildings offer record breaking cash and rent incentives to sweeten their offers.’
Read more in the Bisnow article, ‘What Do We Do Here?’: Distress Signals Are Rising In Major Office Markets’, here https://www.bisnow.com/national/news/capital-markets/office-sector-could-see-more-distressed-loans-as-tenants-flee-older-buildings-111539.
But if you’re buying instead, let’s take a look at title insurance, the incredibly important piece of ANY residential or commercial real estate purchase!
If you want to understand more about title insurance and title insurance providers, please read the article…
‘Are New York Title Insurance Providers All The Same?’ here, https://www.hallmarkabstractllc.com/new-york-title-insurance/
Hallmark Abstract Service…You Buy, We Protect!Google+