Office building owners in the United States are on the brink. $117 billion in debt to be repaid in 2024 alone.
by sylsau
Office building owners in the United States are on the brink. $117 billion in debt to be repaid in 2024 alone.
by sylsau
1 comment
Office building owners in the United States are on the brink.
Caught in a storm of sharply rising interest rates, they could face a crisis of unprecedented proportions.
Billions of dollars in losses loom as commercial loans, often interest-only, mature, forcing gigantic payments.
Regional banks, in particular, are extremely exposed to commercial real estate turmoil, with nearly two-thirds of loans soon to expire.
Additionally, the commercial mortgage-backed securities (CMBS) market, already plagued by rising defaults, could also spread the pain.
With approximately $800 billion in CMBS in the United States and a significant increase in defaults, the risk of widespread losses is real.
Iconic buildings like the Willis Tower in Chicago are under threat, with the coming year shaping up to be a minefield for the commercial real estate sector.