Posted 1/25/2024, 7:09:00 PM
Experts Warn of $700 Billion Default Risk for Commercial Real Estate Facing Higher Rates, Lower Values
- Experts warn a $700 billion commercial real estate debt default looms as properties face higher rates and lower valuations
- The office sector especially distressed with remote work trends leaving 25% peak occupancy in DC and 10 Empire State Buildings' worth empty in NYC
- A $2.2 trillion commercial real estate debt mountain matures by 2027, forcing tough refinancing
- Owners may have to inject equity or hand back keys as values plunge
- Experts say the Fed will have to cut rates this year to try to solve the problem