How Will Banks Survive the Commercial Real Estate Meltdown?

Almost $1 trillion of CRE mortgages must be paid down, refinanced, or extended by the end of 2024—the smart money is already running for the exits.
How Will Banks Survive the Commercial Real Estate Meltdown?
Office buildings, which make up the heart of midtown Manhattan, N.Y., stand largely empty, on March 4, 2021. Spencer Platt/Getty Images
James Gorrie
Updated:
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Commentary
The commercial real estate (CRE) market has been balancing on the threshold of a major readjustment since 2021. That’s when the first of the extremely low interest rate, three-year loans were becoming due.

How Long Can Banks Hold Underwater Loans?

So far, the banks’ main solution to that problem has been to kick the can down the road a bit by extending maturing loans at the same low interest rates for another three years and hoping that interest rates fall.
James Gorrie
James Gorrie
Author
James R. Gorrie is the author of “The China Crisis” (Wiley, 2013) and writes on his blog, TheBananaRepublican.com. He is based in Southern California.
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