The US office sector will worsen through next year, and the recovery will be slower than after the 2008 crisis, Fitch Ratings says

• Fitch Ratings revised its office delinquency forecast for 2024 and 2025.
• The sector's recovery will be slower than after the global financial crisis, it said.
• Maturing office loan refinanceability will reach no more than 16%-21%.

Things are not looking up for the US office sector, with loan performance set to slump even further in 2025, Fitch Ratings said.

After the market significantly underperformed Fitch's year-to-date expectations in May, the rating agency has revised its office delinquency forecast to 8.4% and 11% through this and next year. That's up from projections of 8.1% and 9.9%, respectively.