A new analysis by Trepp and CompStak raises the question of whether the office segment of CRE is facing a now-cliched perfect storm metaphor. The three dangers that could unite are office loan maturities, large lease expirations, and low space demand.
Said another way, it comes down to inflation and the end of easy money, worry about corporate financial performance, and the desire of working people to control more of their lives.
The report says that by the end of 2424, $40.47 billion in loans — that's 353 loans backed by 583 office properties — and 56% are floating rate with an average remaining term of over 10 months and all with extension options of 29 months.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
