As the office market continues with its well-known struggles, many landlords are facing maturing loans with expiration dates of between now and the next three years or by year-end 2026. Altogether, more than 19% of office properties are experiencing this quandary, according to CommercialEdge.

In the past, many companies simply renewed their leases, but the new financial headwinds and expiring leases are becoming a potential catalyst for markets across the country to be disrupted, according to the report. The loans on office buildings set to expire are significant, representing 1.3 billion square feet.  The problem is compounded for certain properties—namely Class B and C—which are considered functionally obsolete due to their age as shiny new Class A towers with better layouts, more amenities and possibly more outdoor space tempt workers to return to work.

According to CommercialEdge, loans on 18.1% of Class B assets, which include more than 594.2 million square feet, are set to mature by year-end 2026. Atlanta leads the pack with this problem with 29.8% of its existing Class B inventory facing loan maturity. Its leasing activity in recent months reflects the tenant preference for Class A office space. For example, Sage Software signed a 47,000-square-foot deal on a timber office building underway on Atlanta's BeltLine.