The debt ceiling is just one threat to the U.S. economy. Companies are cutting back on office space as employees continue to work from home. 🎧 It could have big consequences for banks, small businesses and cities that benefit from the property taxes tied to office buildings. 🏢 If companies keep giving up leases, office landlords may not be able to collect enough rent to cover mortgage payments. 🏢 The bulk of the $1.2 trillion in office space debt is owed to smaller regional banks, which are already in turmoil from depositors fleeing to bigger banks. 🏢 Businesses such as dry cleaners and convenience stores that have depended on heavy work week foot traffic are struggling to survive. 🏢 Landlords see some solutions, like converting office buildings to apartments. But it's a major undertaking and not all buildings can be transformed. |
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