Vacancy rates in major metropolitan business districts reached historic highs this quarter, compelling commercial real estate investment trusts to write down office asset valuations.
Conversion Limitations
Architectural constraints and municipal zoning laws continue to limit the viability of converting Class B office buildings into residential units, pushing developers toward demolition or alternative uses.
Logistics Reallocation
Capital reserves are steadily flowing into suburban logistics hubs and data centers, which offer higher cap rates and lower structural vacancy risks.