Over $2.8 Trillion in Commercial Real Estate Debt Facing Renewal, Potentially Leading to More Delinquencies and Bankruptcies
• $2.81 trillion in commercial real estate debt set to expire through 2028, with borrowers facing much higher rates • Record $544.3 billion in debt expiring in 2023; amount expected to increase • Refinancing at higher rates very difficult due to rising vacancies (especially offices) • Small and mid-sized banks highly exposed, holding 67% of commercial real estate debt • Bankruptcies already occurring (JER Investors, WeWork); delinquencies projected to climb to 4.9% by 2025