By Ashley Fahey | National Observer: Real Estate Edition
All eyes are on mounting debt in the commercial real estate world, which continues to struggle with higher interest rates, a more cautious lending environment and muted return-to-office and leasing activity in the wake of the Covid-19 pandemic.
Nearly $1.5 trillion in commercial real estate debt is maturing by the end of 2025, Morgan Stanley analysts found this spring.
The Business Journals recently examined properties nationally that secure debt in commercial-mortgage backed securities (CMBS) loan portfolios, obtained via financial filings with Bloomberg, to pinpoint which metro areas will see the most CMBS debt maturing by the end of 2024 — and could face disproportionate challenges at refinancing, given current economic pessimism.
Perhaps unsurprisingly, major gateway markets are carrying the most CMBS debt maturing within the next 18 months, with New York topping the list (at about $39.8 billion), followed by Los Angeles ($17.9 billion), Miami ($12.6 billion), San Francisco ($11.4 billion) and Las Vegas (nearly $10.6 billion).
Phoenix ranks 11th among the Top CMBS Debt Markets at about $6.5 billion.
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