Remote work is starting to hit office rents

After a lag, the work-from-home revolution is finally starting to show up in the data for office building rental rates.

State of play: Major markets like San Francisco and Manhattan — where long commute times seem to be driving the durability of the WFH lifestyle — have been hit the hardest.

• On the other hand, markets like Raleigh, Boston and Minneapolis — which have a higher concentration of health services, biotech and life science employment — seem to be faring well. (It’s hard to do laboratory research from your home office.)

What we’re watching: Whether the issues in the office market worsen due to balance-sheet stress at regional banks.

• Small and midsized banks (those not among the top 25) currently hold 67.2% of all outstanding commercial real estate loans, Axios recently reported.