The New York Post points out that the debt backed by commercial real estate in the US has hit $3.5 trillion. The paper writes that “about $1.4 trillion in real estate debt is set to mature over the next four years, with some $204 billion coming due this year alone.”
With commercial real estate occupancy rates falling and downward pressure on rates, money center and regional banks will be forced to write-off some of the value of loans that are renegotiating, or worse, be forced to take ownership of commercial real estate properties which are likely to continue to lose their values.
