The Tesla CEO says the trend of empty offices is becoming widespread
This is the question that has been haunting investors for several months now, and even billionaire serial entrepreneur Elon Musk has weighed in on the matter.
The real estate sector is indeed going through a tough period due to the increase in interest rates by the Federal Reserve to combat stubborn inflation. Musk, known for his insights and predictions, has warned that the current economic policies have had a detrimental impact on the debt payments of heavily leveraged property owners. According to industry data, commercial real estate actors currently owe a staggering $1.5 trillion to banks, pension funds, and insurers.
One of the consequences of this situation is the decline in property values. This reality is further aggravated by the increasing number of empty office spaces in major cities. Large corporations, employing over 50,000 individuals, have announced plans to reduce office space by 10% to 20% by 2026. This trend, highlighted by a survey conducted by real estate agent Knight Frank, indicates that employees have abandoned office buildings in favor of remote work.