Interest Rate Avalanche: US Office Buildings Brace For $117B Debt Cliff
- 5 months ago
Per the Mortgage Bankers Association’s data, approximately $117 billion of commercial mortgages tied to offices are due for repayment or refinancing in 2024, the Financial Times reported.
Most of these loans were procured a decade ago when interest rates were much lower. Now, with commercial mortgage rates nearly doubling and building performance deteriorating, the probability of colossal losses for investors has increased.
Most of these loans were procured a decade ago when interest rates were much lower. Now, with commercial mortgage rates nearly doubling and building performance deteriorating, the probability of colossal losses for investors has increased.