Distressed Commercial Real Estate Reaches 10-Year High of $80 Billion as Rising Rates Strain Property Market
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The value of distressed commercial real estate in the US reached $80 billion in Q3 2022, the highest level in 10 years.
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Rising interest rates and declining office demand are causing issues in the property market.
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Office properties accounted for 41% of the $79.7 billion in distressed commercial real estate.
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Apartment buildings made up almost a third of the $215.7 billion of potentially troubled properties.
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US commercial property values fell 9% in the past year and transactions dropped 53%.