- Commercial-property losses will add to banks' woes as the value of shopping centers and offices is undermined by higher interest rates and the lingering impact of Covid-19.
- Vacancy rates have risen in all but the best offices, landlords are offering generous incentives to lure tenants, and landlords may be unable or unwilling to hang on to these properties.
- Around 15% of outstanding commercial-property debts across all lender types in America are maturing this year, and about 40% might have trouble refinancing.
- Banks will end up responsible for lots of offices, which they will likely have to sell at deep discounts, and there are concerns about what happens to buildings no one wants to work in anymore.
- There are two paths: fundamental repricing where banks sell assets at a huge discount or local officials step in to renovate or convert.
Commercial-property losses will add to banks’ woes
Real-estate investors see a hellish-perfect-dumpster-fire-storm | Finance & economics
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