January 04, 2021
It may be 2022 or later before property values for apartments, offices, and retail real estate return to pre-COVID levels. Bloomberg cites a report that the pandemic has upset real estate fundamentals by “changing how we lead our lives.” An estimated $430 billion in debt matures in 2021. Reduced travel, work from home, and the rise of e-commerce will continue to challenge lenders and borrowers.
According to the DOE, commercial buildings use about 22.5 kilowatt-hours per square foot. Some analysts predict that work-from-home will reduce office space demand by 15%.