The Wall Street Journal reported that bank regulators are urging flexibility in commercial real-estate loan workouts as defaults continue to grow. Loans that were signed up when interest rates were at historic lows are already in trouble. That, coupled with pandemic-era changes in the workplace has put the office sector at the forefront of the watchlist. With employment already at a high level, adding more jobs in the future might not be enough to combat high office vacancy as the workforce continues to embrace hybrid and remote opportunities. “There’s such a substantial part of the office market that is antiquated,” said Joshua Zegen, co-founder of Madison Realty Capital, a real-estate private-equity firm.

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