There has been much talk for a while about offices heading for the buffers. The nightmare scenario is many thousands of office buildings being deemed virtually worthless as leases come up for renewal, leaving owners and even lenders run aground. Landlords, investors and financiers have all been looking over their shoulders nervously.
This is compounded by the longstanding anxieties around retail due to the move from bricks and mortar to more online shopping. Charlie Munger, Warren Buffett’s right-hand man, has warned of a major pullback in lending to commercial property. He argues that American banks are full of bad loans associated with previously lucrative assets.
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