Reuters: WeWork’s troubles darken outlook for embattled office market

Global office vacancies are surging to all-time highs and expected to climb, causing further troubles for co-working titan WeWork and darkening the outlook for the world’s largest business hubs, writes Sinead Cruise for Reuters, citing research from Credit Benchmark.

“Global lenders to UK real estate holding and development companies, which supplied credit risk assessments to data provider Credit Benchmark in October, said those firms were now 9% more likely to default than they estimated 12 months ago. U.S. industrial and office real estate investment trusts (REITs) were seen 35.8% more likely to default, versus expectations a year ago.”

Reuters, November 3, 2023.

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Credit Benchmark brings together internal credit risk views from over 40 leading global financial institutions. The contributions are anonymized, aggregated, and published in the form of consensus ratings and aggregate analytics to provide an independent, real-world perspective of credit risk. Risk and investment professionals at banks, insurance companies, asset managers and other financial firms use the data for insights into the unrated, monitoring and alerting within their portfolios, benchmarking, assessing and analyzing trends, and fulfilling regulatory requirements and capital.