Multifamily Maturities Weaken, While Office Improves

The pattern of analyzing CRE loans of late has been shaking heads at the progress of maturing office properties and taking some solace in some other property types like office. But in what Moody’s Analytics CRE called an October surprise that had nothing to do with a political election, the tables turned. Office improved while multifamily weakened.

“In October, only $366 million of CMBS office debt reached its fully extended maturity date,” said the Moody’s report. “The payoff rate for October came in at 38.8%, the highest monthly rate since June. As a result, the year-to-date (YTD) payoff rate climbed slightly to 31.6%. Of the loans that have failed to pay off at maturity in 2023, just less than half have managed to secure formal extensions from special servicers.” There was also a maturing loan that was liquidated at a 55% loss.