Roughly $1.5 trillion in commercial real estate loans are scheduled to mature over the next two years, creating significant refinancing challenges especially for office properties with depressed valuations.
Banks with heavy CRE exposure are working with borrowers on extensions and modifications rather than forcing defaults. Non-bank lenders are filling some gaps at higher rates.
Investors see opportunity in distressed property acquisitions, but most expect the workout process to extend well into 2027 and beyond before markets fully stabilize.
