Trepp recently looked at two CRE sectors — office and retail — and delivered potential bad news in each, as if that is a big surprise to industry professionals.
"Amid the banking crisis, Trepp data shows that, of the $270 billion of bank commercial real estate loans maturing in 2023, about $80 billion (30%) are backed by office properties," the firm wrote. The clear implication is that if a wave of continued trouble washed over the banking sector, a lot of attention would have to focus on the short-term loans because those are assets that in theory could be sold off or closed out to provide capital to satisfy depositor demands.
Beyond that, Trepp showed an 80 basis-point increase in CMBS office delinquency between December 2022 and February 2023.
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