Posted 12/6/2023, 5:35:45 PM
Real Estate Faces Debt Wall But Dodges Wider Damage
- $1.5 trillion in commercial real estate debt coming due by 2025, needing refinancing
- Traditional credit providers like banks shrinking, opening opportunities for private credit firms
- Office sector struggles won't trigger real estate collapse or banking issues
- Construction starts down significantly (75% industrial, 65% multifamily from peak), impacting supply
- Multifamily rental rate stalls due to oversupply from peak construction, but low new starts mean supply crunch again by 2025