Washington, D.C., is officially the nation’s capital of office woe.
Nearly three-quarters of office loans in the D.C. area are at risk of default, according to Trepp. Its 72% share of office loans in the third quarter defined as “criticized” — a reflection of buildings with high vacancy, lease expirations or other risk factors — is now the highest of any major city in the country, overtaking San Francisco, which had a 71% criticized rate.
The numbers are according to the data provider’s third-quarter CRE loan distress report, first reported by Bloomberg.
“Washington, D.C., could be the new ground zero for office distress,” Trepp Research Director Stephen Buschbom told Bloomberg.
Click here to read the rest of the article written by Emily Wishingrad over at Bisnow
