Ana Lai, Senior Director Real Estate, S&P Global Ratings, says the office real estate market in the United States is deteriorating, pressured by longer-term secular headwinds from remote working and near-term cyclical risks from a slowing economy and weaker job growth, and explains recent rating actions following a portfolio review of office REITs.
We expect office assets to underperform other real estate property types over the next two years given expected pressure to net effective rents and occupancy levels.
Growth for the rated office REIT sector will likely be muted overall, with relatively flat to slightly negative NOI growth projected in 2023
Highlights
Ratings Actions & Outlooks
