Search
 

Is 2025 the End of Extend and Pretend?

Debt maturities may finally be coming due amid Fed interest rate moderation. It may bring increased investor opportunity.

By Lynn Giles (Sponsored by Vesta Capital) | February 19, 2025 at 03:45 AM

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2025 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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2025 ALM Global, LLC. All Rights Reserved.