CHARLOTTE, N.C. — The economy is on shaky ground as the work-from-home crunch continues while some businesses shed positions to try and stay above water. With the banking industry checking over the books and tightening down on lending, corporate office towers across the country are starting to see more empty spaces.
CommLoan CEO Mitch Ginsberg says nearly 20% of office spaces around the country are currently empty through the U.S. with metro areas hit the hardest.
"There is a big number of buildings that are going to open with office space available," Ginsberg said. "It will be around 60 million square feet of space coming online which is the highest level we've seen since 2009."
He added that supply and demand are among the factors at play here.
In terms of the economy, $270 billion in commercial real estate loans are coming due this year with roughly $80 billion of it being held in office space. If defaults and foreclosures start to happen, it could spell some serious headwinds for the economy.
"There may still be far greater vacancies with leases coming due and companies saying we don't need this size space," Ginsberg said. "Some businesses could choose not to renew leases at all. This has a trickle-down effect to small businesses relying on that foot traffic. Vacant buildings create additional issues with ripple effects."
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