The hybrid work revolution is taking a toll on the real estate industry, with landlords increasingly defaulting on mortgages.

The global pandemic sped up the transition to remote and hybrid work, as companies were forced to allow their employees to work from home. Post-pandemic, many employees have pushed back against return-to-office plans, especially since many companies reported increased productivity with hybrid work. Employees have also grown accustomed to the increased flexibility and quality of life.

According to The New York Times, one side effect of the transition is that some landlords can no longer afford their mortgages due to decreased occupancy. As a result, landlords are increasingly “handing back the keys,” letting the banks or investors repossess the property. With some 23% of office space in the US reportedly vacant at the end of November, it’s easy to see why landlords are struggling.

Unfortunately, while defaulting on mortgages may make sense for a landlord, it passes the problem up the chain, saddling banks and investors with properties that are not earning what they should.

The issue underscores the deap-seated issues involved in the transition to hybrid work and the need for long-term solutions to such problems.