Metros with the highest value of distressed office real estate debt in the U.S 2023

Chicago-Naperville-Joliet, IL-IN-WI, was the metropolitan area with the highest value of distressed office real estate debt in the United States in April 2023. The distressed real estate loans, or the value of debt which is delinquent or in special servicing, amounted to over 1.6 billion U.S. dollars. The office sector has suffered a dramatic decline in demand since the beginning of the coronavirus pandemic. As the monetary policy tightens and investors become increasingly cautious with lending, many office occupiers downsize, resulting in landlords struggling to find tenants and service their debts.