The unplanned consequence of the plandemic and the following lift in interest rates is that the whole commercial real estate portfolio has shifted downward in quality. This means refinancing problems for all.
Yet we are likely past the worst now. The next five years should allow occupancy to rise and pricing to be adjusted.
Certainly trained staff preferred home offices. open offices failed to provide a social solution as hoped. and conference rooms and meeting rooms are fine for coming in one day a week. The fact is that comm efficiency made this solution possible and this is the natural consequence ,just right now.
Fearing Losses, Banks Are Quietly Dumping Real Estate Loans
• New York Times
Fearing Losses, Banks Are Quietly Dumping Real Estate Loans
Some Wall Street banks, worried that landlords of vacant and struggling office buildings won't be able to pay off their mortgages, have begun offloading their portfolios of commercial real estate loans hoping to cut their losses.
It's an early but telling sign of the broader distress brewing in the commercial real estate market, which is hurting from the twin punches of high interest rates, which make it harder to refinance loans, and low occupancy rates for office buildings - an outcome of the pandemic.
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