In 2023, the national office space vacancy rate reached 19.6%, above the 19.3% historic peak in 1991. The overcapacity, over-valuation and debt write-downs needed in commercial real estate are themes that will persist for some time. No quick fix.

Federal regulators in recent weeks have signaled concerns about commercial real estate, a financial sector that could spell economic trouble. A combination of decreased demand for office space and high interest rates has put pressure on leaseholders and smaller banks in particular. Economics correspondent Paul Solman reports from San Francisco. Here is a direct video link.