MORT - Commercial Real Estate Distress Rates Continue To Rise And Here's Why...
2024-05-01 09:13:52 ET
Summary
- Commercial real estate distress rates continue to rise with CRE CLO distress rates breaching 10%.
- While office assets still remain the most troubled, multifamily distress is increasing after years of aggressive building and underwriting.
- We explore an asset in Washington D.C. as a case study and discuss the outlook of the broader multifamily market.
In February, we authored an article titled “ Commercial Real Estate Could Be At A Tipping Point .” The discussion centered around a massive wave of loan maturities facing the commercial real estate sector. Specifically, the parallels that could be drawn between sentiment coming from Jerome Powell’s Federal Reserve and Ben Bernanke prior to the Great Financial Crisis. At the time, the Federal Reserve remained insistent that commercial real estate problems were limited and isolated within the financial system....
Commercial Real Estate Distress Rates Continue To Rise And Here's Why...