The majority American corporate offices are currently half-empty

The majority American corporate offices are currently half-empty, per CNN.

Offices were the worst-performing US commercial properties in 2022.

About $270 billion in commercial real estate loans held by banks will come due in 2023, according to Trepp. Roughly $80 billion, nearly a third, are on office properties.

Average occupancy of offices in the United States is still less than half March 2020 levels, according to data from security provider Kastle.

In January, Blackstone Inc. noticed an outflux of retail investors and wealthy individuals in real estate amid volatile markets. The IDR Investment Management reported a massive $20 billion withdrawal request from a group of institutional investors' property funds.

Pacific Investment Management Co., head of global private commercial real estate, gave a statement regarding his thoughts on the market. Murray likened it to a nightclub, sharing how it would shut down once everybody leaves.

Murray: “It’s like the nightclub where everybody lines up to get in and then lines up to leave when it closes,”

People familiar with the situation said that institutional investors are trying to avoid exposure even to some of the biggest fund managers in the industry. This means they are staying away from even the likes of Morgan Stanley.

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