{"id":3945,"date":"2022-10-07T00:02:25","date_gmt":"2022-10-07T00:02:25","guid":{"rendered":"https:\/\/imsfund.com\/?p=3945"},"modified":"2022-10-07T00:02:25","modified_gmt":"2022-10-07T00:02:25","slug":"these-10-markets-have-rising-commercial-vacancy-rates-remote-work-is-hurting-investors","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2022\/10\/07\/these-10-markets-have-rising-commercial-vacancy-rates-remote-work-is-hurting-investors\/","title":{"rendered":"These 10 Markets Have Rising Commercial Vacancy Rates\u2014Remote Work Is Hurting Investors"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\"><button class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/svg><\/p>\n<h2 class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">In this article<\/h2>\n<p><\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">Office closures during the COVID-19 pandemic made it clear that productivity continues to flourish in many white-collar industries, even when employees aren\u2019t directly observed under the same roof. For many companies, that meant a permanent shift to remote or hybrid work models. As of April, people worked remotely about 39% of the time, according to\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.pewtrusts.org\/en\/research-and-analysis\/blogs\/stateline\/2022\/05\/24\/as-remote-work-persists-cities-struggle-to-adapt\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Pew Research<\/span><\/a><span data-preserver-spaces=\"true\">. Data from a\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.mckinsey.com\/industries\/real-estate\/our-insights\/americans-are-embracing-flexible-work-and-they-want-more-of-it\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">McKinsey survey<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0shows that 58% of workers are allowed to work remotely at least once a week, while 35% have the option to work from home all the time.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For many employees, this change is welcome. It means the opportunity to stay in pajama pants, spend more time with pets, skip the hassle of a commute, and claim the home office tax deduction. 87% of workers take advantage of the opportunity to work remotely. But for many commercial real estate investors, the change means higher vacancy rates in office buildings, less rental income, and debt concerns. What\u2019s more, a decline in <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/commercial-real-estate\" target=\"_blank\" rel=\"noreferrer noopener\">commercial real estate<\/a> prices hurts cities and the broader economy.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">The Varied Impact of COVID-19 on Commercial Real Estate<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Commercial real estate prices decreased globally with the onset of the pandemic and is now exhibiting a\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nar.realtor\/newsroom\/commercial-real-estate-market-expected-to-grow-despite-rising-interest-rates\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">strong recovery<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0in general. But outcomes have looked different across segments and markets. The\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.imf.org\/en\/Publications\/global-financial-stability-notes\/Issues\/2022\/08\/01\/Commercial-Real-Estate-Prices-During-COVID-19-What-is-Driving-the-Divergence-521593\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">International Monetary Fund<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0found that the trajectory of recovery was most impacted by factors specific to the pandemic, including:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">The aggressiveness of virus containment strategies\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">The effectiveness of fiscal support\u00a0<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">The aggressiveness with which financial conditions were loosened<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">The vaccination rates in the area<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Local and segment-specific changes in consumer behavior\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">Some segments of commercial real estate boomed during the pandemic. Stalled multifamily new construction starts combined with rising home prices\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.atlantafed.org\/economy-matters\/banking-and-finance\/2021\/08\/17\/commercial-real-estate-update-pandemics-impact-on-each-sector\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">increased the demand<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0for multifamily units, and, consequently, rent prices and occupancy rates. And as e-commerce heated up due to retail closures, the industrial sector experienced increased rents due to high demand for distribution warehouses.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">But retail and office space segments were harder hit by the impact of the pandemic.\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.pewresearch.org\/social-trends\/2020\/12\/09\/how-the-coronavirus-outbreak-has-and-hasnt-changed-the-way-americans-work\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">71%<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0of workers worked remotely in 2020, and that left office spaces empty. This had a negative effect on urban retail, as foot traffic for downtown restaurants and shops declined. Suburban retail saw\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/bellwetheram.com\/insights\/state-of-the-retail-market-2020\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">improved performance<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0accordingly.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">As offices reopen, office vacancy rates are declining overall. In fact, of 139 metro areas, only about\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nar.realtor\/blogs\/economists-outlook\/metro-office-vacancy-rates-q3-2022\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">one-quarter<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0have office vacancy rates that are lower than pre-pandemic levels. Some cities have even seen increased occupancy rates since before the pandemic. But for other cities, the situation is far more dire. The metro areas in the chart below have the\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/cdn.nar.realtor\/sites\/default\/files\/documents\/2022-q3-metro-office-vacancy-rate-rank-08-02-2022.pdf\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">highest vacancy rates<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0currently.\u00a0<\/span><\/p>\n<figure class=\"wp-block-table is-style-regular\">\n<table>\n<thead>\n<tr>\n<th>Metro<\/th>\n<th>Pre-Pandemic Vacancy Rates<\/th>\n<th>Q3 2022 Vacancy Rate<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Houston, Texas<\/td>\n<td>16.36%<\/td>\n<td>18.89%<\/td>\n<\/tr>\n<tr>\n<td>Dallas-Fort Worth, Texas<\/td>\n<td>15.14%<\/td>\n<td>17.57%<\/td>\n<\/tr>\n<tr>\n<td>San Francisco, California<\/td>\n<td>6.28%<\/td>\n<td>15.45%<\/td>\n<\/tr>\n<tr>\n<td>Washington, D.C.<\/td>\n<td>12.77%<\/td>\n<td>15.2%<\/td>\n<\/tr>\n<tr>\n<td>Chicago, Illinois<\/td>\n<td>12%<\/td>\n<td>15.08%<\/td>\n<\/tr>\n<tr>\n<td>Phoenix, Arizona<\/td>\n<td>12.07%<\/td>\n<td>14.69%<\/td>\n<\/tr>\n<tr>\n<td>Los Angeles, California<\/td>\n<td>10.22%<\/td>\n<td>13.81%<\/td>\n<\/tr>\n<tr>\n<td>Austin, Texas<\/td>\n<td>9.08%<\/td>\n<td>13.58%<\/td>\n<\/tr>\n<tr>\n<td>Atlanta, Georgia<\/td>\n<td>11.55%<\/td>\n<td>13.52%<\/td>\n<\/tr>\n<tr>\n<td>New York City<\/td>\n<td>7.69%<\/td>\n<td>13.43%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p><span data-preserver-spaces=\"true\">San Francisco saw a particularly vast increase in vacant office space compared to before the pandemic. The city has a high concentration of office buildings, many of which host major tech employers that have embraced the future of remote work.\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/sfstandard.com\/business\/san-francisco-braces-for-epic-commercial-real-estate-crash\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Experts believe<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0the San Francisco commercial real estate market is headed for a devastating crash.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">And vacancy rates could worsen in areas most impacted by remote work since office leases are generally for three years or longer. As leases signed prior to the pandemic expire and tenants choose not to renew, vacancies may edge higher, further deflating the value of commercial real estate.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Landlords of Older Office Space Buildings Are Hurting the Most<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Leasing activity has\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.naiop.org\/en\/Research-and-Publications\/News\/NAIOP-News\/2022\/Office-Space-Demand-Q2\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">increased<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0since 2021, driven mostly by businesses seeking top-tier office space. In anticipation of employees\u2019 return to the office, many companies are relocating to new buildings with amenities designed to draw workers away from their couches\u2014think expansive rooftop lounges with gorgeous views, fitness facilities, other wellness-oriented features, media centers, and restaurants.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Therefore, the buildings most vulnerable to high vacancy rates are older office buildings that haven\u2019t been updated. On part of Manhattan\u2019s Third Avenue, for example, a cluster of buildings erected between the 1950s and the 1980s has more available space than the rest of the city\u2019s office buildings, with a vacancy rate of\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.bloomberg.com\/graphics\/2022-remote-work-is-killing-manhattan-commercial-real-estate-market\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">29%<\/span><\/a><span data-preserver-spaces=\"true\">. And in San Francisco, owners of lower-tier buildings\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/sfstandard.com\/business\/san-francisco-braces-for-epic-commercial-real-estate-crash\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">face foreclosure<\/span><\/a><span data-preserver-spaces=\"true\">. Some of these buildings have lost as much as half of their value, which is prompting landlords to request lower tax bills.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Tenants Now Have the Power to Make Demands\u00a0<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Real estate agents say that empty space in central business districts across the country has turned commercial real estate into a\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.cbsnews.com\/news\/commercial-real-estate-how-the-covid-19-pandemic-gave-tenants-the-upper-hand\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">tenant\u2019s market<\/span><\/a><span data-preserver-spaces=\"true\">. While Class A office space may still be attracting rents on par with pre-pandemic times, owners of older buildings are offering office space at a discount, sometimes up to 25% for creditworthy applicants in certain areas.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">It\u2019s also common for tenants to ask for flexibility in lease arrangements. For example, leases can include clauses that allow for subleasing or an extended lease in case of business interruption. Concessions such as tenant improvement allowances are also becoming more common. Before the pandemic, landlords held all the power, but the market has shifted into the hands of the tenant.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Rising Interest Rates Add Pressure on Investors<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">In addition to struggling with reduced rental income, commercial real estate investors face financing issues associated with tighter financial conditions. The <a href=\"https:\/\/www.biggerpockets.com\/blog\/the-fed-wants-a-housing-correction\" target=\"_blank\" rel=\"noreferrer noopener\">Fed will continue to raise the federal funds rate<\/a> in an effort to control inflation. The resulting high-interest rates make it difficult for investors to finance new real estate transactions or refinance existing loans.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In markets with relatively low-interest rates, commercial real estate prices have been\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.imf.org\/en\/Blogs\/Articles\/2022\/09\/21\/commercial-real-estate-sector-faces-risks-as-financial-conditions-tighten\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">more resilient<\/span><\/a><span data-preserver-spaces=\"true\">. This shows the direct impact of higher rates on property values. Additionally, slowing economic activity and fears of an upcoming recession may limit the demand for commercial real estate as more people cut back on shopping and dining out.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">It\u2019s bad enough that commercial real estate investors are losing money as their properties depreciate. But declining commercial property prices also pose a threat to the stability of the financial system and the broader economy.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">How Commercial Real Estate Impacts the Broader Economy<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Local governments in most states get the\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.pewtrusts.org\/en\/research-and-analysis\/data-visualizations\/2021\/how-local-governments-raise-their-tax-dollars\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">vast majority<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0of their revenue from property taxes. As property values decrease and tax obligations are reassessed, budget cuts will be necessary in affected cities. This will have a detrimental impact on the availability of social services and spending on education. State and local governments spend about\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.urban.org\/policy-centers\/cross-center-initiatives\/state-and-local-finance-initiative\/state-and-local-backgrounders\/state-and-local-expenditures\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">one-third<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0of their money on elementary and secondary education. If commercial property values decline enough, schools could be starved of resources. San Francisco could be poised to collect\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/sfstandard.com\/business\/san-francisco-braces-for-epic-commercial-real-estate-crash\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">15% less<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0in property tax revenue, equating to about a 4% dip in total revenue, according to economists.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The second problem is the impact on the financial sector, particularly small banks. Soon after the pandemic began, banks saw elevated delinquencies on commercial real estate loans. And declining property values impact how much banks can recoup when they foreclose. Banks hold about 38% of outstanding commercial real estate debt on their balance sheets, and community and regional banks tend to be more exposed to commercial real estate loans than larger banks, according to\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.chicagofed.org\/publications\/chicago-fed-letter\/2021\/463\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">The Chicago Fed<\/span><\/a><span data-preserver-spaces=\"true\">. That puts these banks at a higher risk of failure.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">When banks fail, it limits the availability of financing to businesses and individuals. This has a ripple effect, causing unemployment as businesses can\u2019t afford to hire staff. With more people unemployed, economic activity slows, creating less demand. Businesses slow their production, creating further unemployment. U.S. bank failures\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.clevelandfed.org\/newsroom-and-events\/multimedia-storytelling\/recession-retrospective.aspx\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">rose sharply<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0during the Great Recession. Though we haven\u2019t seen any bank failures\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.fdic.gov\/bank\/historical\/bank\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">in the last two years<\/span><\/a><span data-preserver-spaces=\"true\">, there\u2019s reason to be concerned about commercial real estate loan loss.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Predictions for the Future of Commercial Real Estate<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Some analysts are calling the outlook for commercial office real estate \u201capocalyptic,\u201d while others are more optimistic.\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=4124698\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Research<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0from professors at NYU and Columbia puts the potential loss in value of offices nationwide at $456 billion. Data from CommercialEdge only shows a small dip in office listing rates, which are\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.commercialedge.com\/blog\/national-office-report\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">down 0.1%<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0year-over-year. But as leases expire and vacancy rates increase, investment in the sector could further decline, pushing property values down.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">However, Lawrence Yun, chief economist at the National Association of Realtors,\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nar.realtor\/newsroom\/commercial-real-estate-market-expected-to-grow-despite-rising-interest-rates\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">expects the market to grow<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0overall. He notes that some midsize markets are improving as businesses opt for more affordable office space away from central hubs. And other sectors are faring even better. Both industrial and residential rents are expected to continue rising in the future. And hotels and retail properties are recovering as well.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">How Investors Can Adapt\u00a0<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Investors can pivot to find deals in areas with booming economies or sectors that are exhibiting strong growth, such as multifamily housing and industrial space. Those who still want to buy office space in the largest metro areas will need to be prepared to make updates that accommodate companies\u2019 evolving needs.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Land is also a viable opportunity. Yun asked local governments to loosen regulations and zoning requirements to encourage investment in residential developments, which would address the shortage of homes. But there\u2019s another option as well\u2014e-commerce businesses seek land for delivery truck storage. Commercial banks may be more willing to offer financing for these deals because they can quickly become profitable.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">What\u2019s clear from the outcome of the pandemic is that cities and sectors are typically not unilaterally affected by economic disruption. Therefore, diversification is the best defense against negative returns. Commercial real estate investors need to start somewhere, and right now, the multifamily and industrial sectors have the advantage, but ultimately it\u2019s wise to have your hands in multiple sectors and markets.\u00a0<\/span><\/p>\n<div class=\"wp-container-1 wp-block-group border border-gray-200 p-6 rounded-md has-slate-50-background-color has-background\">\n<div class=\"wp-block-group__inner-container\">\n<div class=\"wp-block-group__inner-container\">\n<h3 class=\"has-text-align-left mt-0\"><strong>On The Market is presented by Fundrise<\/strong><\/h3>\n<figure class=\"wp-block-image size-large is-resized\"><picture class=\"wp-image-142373 sp-no-webp\" title=\"These 10 Markets Have Rising Commercial Vacancy Rates\u2014Remote Work Is Hurting Investors 2\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-1024x252.webp 1024w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-300x74.webp 300w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-768x189.webp 768w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black.webp 1380w\" sizes=\"(max-width: 256px) 100vw, 256px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-1024x252.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-300x74.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-768x189.png 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black.png 1380w\" sizes=\"(max-width: 256px) 100vw, 256px\" type=\"image\/png\"><img decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-1024x252.png\" loading=\"lazy\" class=\"wp-image-142373 sp-no-webp\" title=\"These 10 Markets Have Rising Commercial Vacancy Rates\u2014Remote Work Is Hurting Investors 2\" alt=\"Fundrise logo horizontal fullcolor black\" height=\"63\" width=\"256\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-1024x252.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-300x74.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-768x189.png 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black.png 1380w\" sizes=\"auto, (max-width: 256px) 100vw, 256px\"\/><\/source><\/source><\/picture><\/figure>\n<p class=\"mb-0\" style=\"font-size:16px\"><strong>Fundrise is revolutionizing how you invest in real estate.<\/strong><\/p>\n<p class=\"mt-0 has-slate-600-color has-text-color\" style=\"font-size:16px\">With direct-access to high-quality real estate investments, Fundrise allows you to build, manage, and grow a portfolio at the touch of a button. Combining innovation with expertise, Fundrise maximizes your long-term return potential and has quickly become America\u2019s largest direct-to-investor real estate investing platform.<\/p>\n<p><a href=\"https:\/\/t.sidekickopen84.com\/s3t\/c\/5\/f18dQhb0S7kF8cpngfW16gy-_59hl3kW7_k2841CX6NGN35Qwt3rN_mgW56Jw3w1HcgXpf197v5Y04?te=W3R5hFj26QkH2W4hJTY63T3pkxW3Fbt5S3Cdl5cf49M_4s04&amp;si=8000000019411002&amp;pi=6988e0ed-1aea-4af5-9769-8a0de4675eeb\" the=\"\" market=\"\" blog=\"\" sponsor=\"\" click=\"\" referrer:=\"\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\" rel=\"noopener\">Learn more about Fundrise<\/a>\n<\/div>\n<\/div>\n<p class=\"italic\"><b>Note By BiggerPockets:<\/b> These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.<\/p>\n<\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.biggerpockets.com\/blog\/rising-commercial-vacancy-rates\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this article Office closures during the COVID-19 pandemic made it clear that productivity continues to flourish in many white-collar industries, even when employees aren\u2019t directly observed under the same roof. For many companies, that meant a permanent shift to remote or hybrid work models. As of April, people worked remotely about 39% of the [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":3946,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/10\/new-york-city-1024x517.jpg","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-3945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/3945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=3945"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/3945\/revisions"}],"predecessor-version":[{"id":3947,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/3945\/revisions\/3947"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/3946"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=3945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=3945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=3945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}