Summary

• The U.S. office real estate market faces persistent vacancy rates near 20.2%, with only modest signs of stabilization.
• Asking rents remain stable, but net absorption turned negative in Q1 2026, reflecting tenant weakness amid economic headwinds.
• Office property construction has sharply declined, suggesting long-term supply-demand rebalancing, but short-term risks dominate.
• Delinquency rates on office CMBS have surged to a record 12.34%, driving a bearish outlook and warranting caution for exposed investors.
• Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »

Right now, one risk area that I see for a segment of the economy would be the commercial real estate market. Specifically, I'm talking about the office space. The COVID-19 pandemic created a surge in work-from-home opportunities. But even

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