- The creeping rot inside commercial real estate is like a dark seam running through the global economy.
- Owners and lenders are grappling with changes in how and where people work, shop and live in the wake of the pandemic.
- About $1.4 trillion of commercial real estate loans are due in the US alone this year and next.
- Major institutional owners including Blackstone, Brookfield and Pimco have already chosen to stop payments on some buildings.
- Commercial real estate’s woes will add to the stress on a financial system that’s already reeling from this year’s crisis in regional banks.
The World’s Empty Office Buildings Have Become a Debt Time Bomb
The global commercial real estate market is facing significant stress as owners and lenders struggle to adapt to changes in how people work, shop, and live. About $1.4 trillion of commercial real estate loans are due in the US alone this year and next. Major institutional owners including Blackstone