The Delinquency Rate for City Office Buildings Is Skyrocketing

Real Estate attorney Stuart Saft was quoted in a Spectrum News New York article that discusses financial struggles facing New York City office buildings. Despite the return of in-person work, the delinquency rate dramatically increased in 2023. Lenders are concerned as numerous office loans approach renewal, forcing difficult decisions. Potential outcomes include missed payments, foreclosure and lenders securing ownership. Mr. Saft highlighted the challenges faced by building owners, indicating that vacant properties result in reduced income, while high commercial real estate loan interest rates add additional pressure.

“There’s a great deal of debt on these office buildings that’s coming due this year and in 2025 and the concern is, what do we do?” he said.

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