A $1.5 Trillion Wall of Debt Is Looming for US Commercial Properties
- Morgan Stanley sees refinancing risks front and center
- Office, retail property valuations could fall as much as 40%
The view from Park Avenue in New York.
Photographer: Jeenah Moon/BloombergThis article is for subscribers only.
Almost $1.5 trillion of US commercial real estate debt comes due for repayment before the end of 2025. The big question facing those borrowers is who’s going to lend to them?
“Refinancing risks are front and center” for owners of properties from office buildings to stores and warehouses, Morgan Stanley analysts including James Egan wrote in a note this past week. “The maturity wall here is front-loaded. So are the associated risks.”