No one is quite sure what will happen when the wave of CRE loan maturities start to come due this year and into the next few.  Aaron Jodka, Colliers' research director of U.S. Capital Markets, has his theories though. He believes that banks and other lenders may be willing to renew or extend loans for the coming wave of maturities coming due as long as they meet coverage ratios. He also believes, according to a post he wrote, that borrowers who had interest rate swaps should be able to work with lenders on rate buydowns. "Ultimately, this will buy time, smooth out maturities and push some loans into the future," he wrote. 

Obviously, the CRE community greatly hopes Jodka is on target in his analysis of how property assets will be received by the banking community. "Debt is still available, despite the recent volatility in the banking sector," he wrote. "The middle markets are still active, particularly between banks with longstanding relationships with borrowers. Life companies are fighting to win deals and need to put capital to work."

Jodka offers one caveat to his anticipated scenario: The large loan space is more restrained and local and regional banks are not stepping in and filling this void.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.