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The total value of offices that were financially troubled or already repossessed by lenders shot up about 36 per cent from the first quarter, MSCI Real Assets reported Wednesday.At the end of June, US$22.7 billion of retail properties — including malls — and US$13.5 billion of hotels were in distress. The total for all troubled commercial properties was almost US$72 billion, up 13 per cent from the first quarter.
“The office sector was responsible for the largest share of market-wide distress,” according to the report, based on filings for bankruptcies, defaults and other publicly reported property issues. “It’s the first time since 2018 that neither the retail nor hotel sector was the biggest contributor.”Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.