According to The Kobeissi Letter, commercial mortgage-backed securities (CMBS) for office properties saw their delinquency rate rise to 10.3% in April 2025, approaching the all-time record and marking a 9 percentage point increase over the past three years (source: The Kobeissi Letter, May 7, 2025). This high delinquency rate signals intensifying stress in the commercial real estate sector, which could impact financial stability and risk sentiment across asset classes. For cryptocurrency traders, heightened concerns over commercial real estate may drive increased market volatility and a flight to alternative assets like Bitcoin and Ethereum, as investors seek safe-haven assets amid growing uncertainty in traditional markets.

According to The Kobeissi Letter, DOGE announced plans to eliminate up to two-thirds of US government office buildings, as reported by WSJ. This significant reduction is set to impact commercial real estate in Washington, DC, where no major US government agency currently occupies even 50% of their office space. Such a move could lead to a substantial shift in real estate market dynamics, affecting demand and pricing strategies.