Fitch Doesn’t See Bottom of Office CRE Mess, Sees CMBS Delinquency Rates Spike Way Past Financial Crisis Peak in 2025 by Wolf Richter • Jun 11, 2024 • 83 Comments A big driver is the “secular decline in the office market” that even slashed interest rates would not end.
CRE Industry Now Frets about Next Existential Threat to Office Towers: AI by Wolf Richter • Jun 3, 2024 • 107 Comments Even more office jobs are expected to vanish, leaving even more vacant space behind.
Nonresidential CRE Loans Are Leaving Skid Marks on Banks by Wolf Richter • May 30, 2024 • 35 Comments They’re only a small-ish part of the banking industry’s overall loan book. But some banks are more exposed than others.
Delinquencies of Floating-Rate Office CMBS Loans Hit 20%, But Fixed-Rate Loans at 4.7% by Wolf Richter • May 2, 2024 • 20 Comments Revenge of the floating-rate CRE loans: Ironically, use of floating-rate office loans ballooned as interest rates rose.
How It’ll Take Years to Clean Up the Office CRE Mess, with Losses Spread Far and Wide by Wolf Richter • Apr 24, 2024 • 80 Comments The Manhattan office tower Blackstone had bought for $605 million in 2014 and walked away from 2 years ago finally changed hands for $200 million, which paves the way for a complex new beginning.
Banks’ Exposure to CRE Loans by Bank Size by Wolf Richter • Apr 13, 2024 • 80 Comments When CRE hits investors, fine, they were paid to take those risks. But we’re a little more squeamish when it comes to banks.
The Biggest Landlords of Single-Family Rental Houses and Multifamily Apartments: Who Owns the US Housing Stock? by Wolf Richter • Apr 9, 2024 • 170 Comments 80% of single-family rentals are mom-and-pop; mega-landlords own just 3%. But mega-landlords dominate multifamily rentals.
Office CRE Mess Keeps Getting Worse, Massive Repricing Underway by Wolf Richter • Apr 1, 2024 • 95 Comments It’ll take years to get this mess cleaned up, at the expense of investors, landlords, and banks.
Who’s on the Hook for Multifamily CRE Mortgages? #1 Taxpayers, far ahead of #2 Banks by Wolf Richter • Mar 18, 2024 • 94 Comments Another reason why the Fed can let the CRE swoon rip.
Some of the 49 Small Banks Heavily Exposed to Bad Multifamily CRE Loans May Topple, but their Size Limits Contagion: Fitch by Wolf Richter • Feb 19, 2024 • 92 Comments Multifamily lending ballooned 32% from early 2020, powered by low interest rates and soaring rents. Now there’s a price to pay.
