U.S. Office Space Delinquency Hits 2008 Crash Level

The rate of more-than-30-days’ delinquency of commercial office buildings in America has risen from 1.5% to 10.4% in two years, and most recently increased by 1% each month; it is now equal to the record delinquency rate in the immediate aftermath of the 2008 global financial crash. The ownership of this commercial real estate sector, with little rental income, cannot make payments, and also cannot sell or refinance the unpayable debt, due to the buildings’ collapsed value; its mortgage-backed securities derivatives cannot be serviced or leveraged.