A Reuters report this week said that  “shares of large and mid-sized U.S. banks sharply underperformed the broader market on Wednesday with … worries about commercial real estate loans in focus among bank investors, according to Reuters.

“Vacancy is 20-plus percent, rents are declining, companies now are obviously thinking about their space needs in light of remote work and the economic climate that’s ahead. Lenders are reluctant to have exposure to office buildings. Buyers are reluctant. Valuations are going down,” said Blackstone President Jonathan Gray at a Sanford C Bernstein investor conference, according to the article. 

Gray also talked about “unprecedented weakness” in older office buildings, according to the report.