In this article, you'll learn:
- Which cities are most affected by maturing office loans.
- How high vacancy rates and economic uncertainty impact office markets.
- The risks tenants face from potential landlord defaults.
- Opportunities for tenants to negotiate better lease deals amid market challenges.
“There are an estimated $4.4 trillion of outstanding commercial and multi-family mortgages, according to the Mortgage Bankers Association, and $728 billion of them mature in 2023.”
-Propmodo
With this in mind, it’s predicted that more commercial property owners than ever are set to hand back their keys (honestly, it’s already happening). But, the situation is more dire in some regions than it is than others.
If we zoom in to look at the performance of the office market on a national level, we can identify both opportunities and potential red flags to avoid. Because “Commercial Edge reports, that in the next three years, 9,500 buildings, or about 17% of all office stock, will be up for renewal. The amount of space with loans maturing over the next three years will hold at about 380 million square feet.”
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