Office loans just hit a 5% delinquency rate – a 20-month high – as WFH and rate rises pile more pressure on commercial real estate

• It's the costliest time to borrow money as interest rates now stand at 5.5%. 
• Commercial real estate has been particularly damaged by the Fed's rate-hiking campaign. 
• Defaults on commercial real estate loans have hit their highest levels since December 2021.

The US commercial real-estate sector is in a prolonged rut. The combination of workers unwilling to return to the office, coupled with the highest interest rates in 22 years, has spelled misery for the sector over the last 18 months.