Deutsche Bank say US Office Market is getting worse
Deutsche Bank analysts painted a grim picture of the US office market. They have predicted that urban CBD’s may not recover until at least 2017.
Richard Parkus, the banks head of commercial securities research said that “The froth is still working itself out.” He went on to add that the current downturn was similar to the problems encountered in the early 1990′s. Worryingly he added that the market was currently getting worse rather than better. Falling demand means that rents are falling, and this in turn means that owners cannot meet their mortgage repayments.
Property values could fall a whopping 50% it was argued.