For all the predictions of office pain if not outright oncoming disaster, some areas were supposed to be in better shape — primary metro markets with high concentrations of business and a lot of Class-A office space that would stay sturdy because of flights to quality.
But according to Yardi's CommercialEdge, "office mortgage maturities signal coming distress," with those loans "concentrated in primary markets, Class A properties and urban areas."
The total amount of mortgages maturing by the end of 2024 are close to $150 billon, and nine metro areas will experience 20% of all office mortgages that come to maturity by then. This is out of 80,000 office properties with $920 in total mortgages. "Ten metros have more than $5 billion of office loans maturing through the end of 2024, and 10 have at least $10 billion of loans maturing by the end of 2026," they wrote.
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.
