Fitch Ratings expects a more protracted U.S. office commercial real estate (CRE) sector recovery during this cycle than following the Global Financial Crisis (GFC). Current trends in office property values suggest further declines this cycle to levels that match or exceed those seen during the GFC. The secular shift to hybrid and remote working and challenging refinancing conditions will drive the slower, more elongated recovery timeline for office and lead to permanent property valuation impairments and higher CMBS loan losses relative to expectations at issuance. {chart} Secular demand pressure and the sustained ... (full story)