Posted 2/11/2024, 4:32:00 PM
Risks to Banks as Commercial Real Estate Woes Mount
- Smaller banks disproportionately hold commercial real estate loans, posing risks as the sector struggles.
- High vacancy rates and interest rates make it harder for developers to pay back loans.
- Billions in commercial real estate loans coming due as values fall, risking defaults.
- Bank failures like Silicon Valley Bank could spread due to commercial real estate exposure.
- Opinions differ on severity of banking crisis risks from commercial real estate sector.
