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US Office Market Report: Low Valuations and Delinquency Concerns Cast Shadow on Sector's Outlook

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US Office Market Report: Higher rates, lower valuations spur fierce headwinds
 
 
Concerns over the office real estate sector remain elevated, particularly for older office buildings where few employees have returned to the office. Office real estate investment trusts have been plagued by low valuations throughout 2023, trading at vast discounts to their net asset value estimates and implied capitalization rates for the sector reaching their highest level in more than 20 years. Check out our recent US Office Market Report below to learn more on challenges within the Real Estate sector.
 
   
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While valuations across the sector remain low, office REITs have reported premier office buildings to be showing stronger demand within their markets, and are seeing employees return to the office in greater numbers than lower-quality office buildings.
   
 
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Q4'23 Chart Book for US Bank - Liquidity Still in the Spotlight
Even with interest rates likely near their peak, bank liquidity, institutions' efforts to shore up funding and the impact on net interest margins were the hottest topics for readers of S&P Global Market Intelligence's bank research and analysis of activity through the fourth quarter.




 
   
     
 
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US Bank Outlook - Banks battle earnings pressures as liquidity remains king
Funding costs continue to grind higher, even in the absence of additional rate hikes by the Federal Reserve, as deposits shift into higher-cost products. The movement will lead to additional modest pressure on margins in the near term, but the key profitability metric should trough soon.


 
     
   
 
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Webinar Replay: Q1 Outlook for U.S. Commercial Banks As Institutions Try to Combat Revenue Headwinds
Tune in to hear the latest from S&P Global Market Intelligence’s FIG research team. Nathan Stovall, Director of FIG Research, presented his proprietary outlook for commercial bank performance and Tom Mason, Senior Research Analyst covering U.S. Financial Technology, presented on AI use cases for banks and fintech partnership trends.


   
 
 
 
 
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