Outside the Box
With $1.5 trillion in loans maturing in the next two years, developers and landlords need more time to restructure and repay debt
As the U.S. emerges from the COVID-19 pandemic, much attention has been given to rising inflation and the interest-rate hikes to combat it. But there is another looming threat with equally impactful and widespread implications for consumers and the economy: commercial real estate. About $1.5 trillion worth of commercial real estate loans are due to mature over the next two years, at a steep increase.
The combination of the tightening of lending conditions and loans refinanced at higher, unsustainable rates could potentially…