Downtown office buildings are still struggling - Daily Trojan
Briefly

Five years post-pandemic, the downtown Los Angeles office market faces significant challenges, with vacancy rates exceeding those seen during the Great Recession. The hybrid work model appears to be a permanent fixture, contributing to a projected 30% vacancy rate in 2024 according to Avison Young. This situation has caused considerable financial strain on property owners, many of whom are unable to pay their loans, resulting in changes in ownership. Notable transitions include the acquisition of properties by Oaktree Capital after Coretrust Capital Partners defaulted on loans, indicating an evolving commercial real estate landscape.
"The hybrid work model is here to stay; however, according to business and economics research center McKinsey Global Institute, the demand for office spaces will remain below pre-pandemic levels."
"Because vacancy rates are increasing, buildings don't have rent flowing in, leading to lower revenues and cash flow. UCLA finance and real estate lecturer Paul Habibi says that many of these office owners have large loans and, without the rent revenue, they are forced to default or change ownership."
Read at Daily Trojan
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