Posted 1/16/2024, 6:08:00 PM
Office Loan Delinquencies Soar to 6.5%, Weighing on Commercial Real Estate Market
- Office loan delinquencies hit 6.5% at the end of 2023, weighing on the commercial real estate market
- Delinquencies rose from 5.1% in the previous quarter, according to the Mortgage Bankers Association
- Office loans have become a major driver of delinquencies in the $4.6 trillion commercial real estate debt market
- The 10-year Treasury yield has retreated from a 16-year high, which could provide some relief
- BofA estimates 15% of maturing conduit loans could fail to refinance in 2024 without an equity infusion