The COVID-19 pandemic accelerated a trend of workers preferring remote work to in-person office attendance, leading to a lack of value for expansive office spaces.
The U.S. faces a commercial real estate crisis, with office vacancy rates exceeding 20% in major cities like San Francisco, Houston, and Seattle.
REITs like Alexandria Real Estate Equities Inc ARE and BXP Inc BXP have struggled with declining share prices due to the impact of the pandemic on commercial real estate holdings.
San Francisco's office vacancy rate of 25.4% is significantly higher than its historical median of 9.3%, showcasing the drastic impact of remote work preferences on commercial real estate.
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