A new analysis by Trepp and CompStak raises the question of whether the office segment of CRE is facing a now-cliched perfect storm metaphor. The three dangers that could unite are office loan maturities, large lease expirations, and low space demand.
Said another way, it comes down to inflation and the end of easy money, worry about corporate financial performance, and the desire of working people to control more of their lives.
The report says that by the end of 2424, $40.47 billion in loans — that's 353 loans backed by 583 office properties — and 56% are floating rate with an average remaining term of over 10 months and all with extension options of 29 months.
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