Commercial-property loans coming due in US jump to $929 billion
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Nearly 20% of outstanding debt on US commercial and multifamily real estate, totaling $929 billion, will mature this year, requiring refinancing or property sales. The volume of loans coming due swelled 40% from an earlier estimate of $659 billion. The increase is attributed to loan extensions and other delays rather than new transactions. The Federal Reserve's decision to stop hiking interest rates is expected to facilitate more deals this year. About $4.7 trillion of debt from all sources is backed by US commercial real estate, raising concerns among regulators and investors. Commercial-property prices have fallen 21% from their peak in early 2022, with office prices experiencing the largest decline at 35%. Banks have $441 billion of commercial-property debt coming due this year, while $234 billion is securitized in CMBS, collateralized loan obligations, and asset-backed securities. Nonbank lenders have $168 billion in loans coming due. Approximately 25% of office loans are coming due in 2024, reflecting the impact of remote and hybrid work on office values and vacancies.

#Commercial-propertyLoans #UsRealEstate #Refinancing #PropertySales

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