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Stronger signs that office sector distress will grow

The large-scale deterioration in office NOIs that we predicted would occur by the end of 2025 appears, on the face of it, to be some way off. But offices are the only sector seeing rising delinquency rates, and with office utilisation rates topping out and sublease availability at record levels, we expect a steady rumble of delinquency and foreclosures to weigh on office sector values over the forecast period.

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