Rising Rates Spell Trouble for Commercial Real Estate
• M&G Real Estate forecasts increased forced property sales globally as banks reluctant to refinance at higher rates • Developers in China, Germany, Sweden suffering from sharp rise in borrowing costs • Global office market outlook weakened by WeWork bankruptcy and remote work trends • 40% of UK commercial real estate loans mature in 2024-2025 when values down 20% • Lower quality offices face vacancies and sustainability upgrade costs unlike prime locations