As CRE market is poised to make moderate gains in 2025, the impact of the debt market and corresponding loan maturity remains to be seen. An estimated $998 billion in CRE loans are projected to mature this year, and with an interest rate potentially 200 basis points higher, some borrowers have negotiated extending the maturity date on their current loan to avoid the higher rates.

According to Marc Kulick, CEO and founder of real estate investment firm, Vesta Capital, a “massive collective maturity date that would rock the industry” is unlikely. He is optimistic that, despite a relationship between borrowers and lenders that’s more strained than in previous years, the CRE market will continue to improve.

Debt Market Reckoning Brings Opportunity

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