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CRE Vacancy Debt Servicing Burn.

Calculate the apocalyptic cashflow burn when Commercial Real Estate (Office Buildings) lose anchor tenants while high-interest floating debt obligations compound.

## The Commercial Real Estate Defcon 1

Office building economics rely on extreme leverage. A developer doesn't use $45M of their own money; they borrow $30M from a regional bank. If the building is 90% full, the rent pays the $2.2M annual interest easily. If "Work From Home" drops occupancy to 65%, the math violently collapses.

### FAQ

**Q: Why does the bank take the building?**
A: When Vacancy hits 35%, the Gross Revenue no longer covers the Operating Expenses (Utilities, Taxes, Security) PLUS the massive monthly bank interest. The Debt Service Coverage Ratio (DSCR) drops below 1.0. This means the building literally burns hundreds of thousands of dollars a month, forcing the developer to hand the keys back to the bank in a spectacular default.