US Commercial Real Estate Faces Impending Debt Crisis

Almost $1.5 trillion of US commercial real estate debt comes due for repayment before the end of 2025, and the big question facing those borrowers is who’s going to lend to them. Office and retail property valuations could fall as much as 40% from peak to trough, increasing the risk of defaults. Small and regional banks, the biggest source of credit to the industry last year, have been rocked by deposit outflows following the demise of Silicon Valley Bank, raising concerns that will crimp their ability to provide finance to borrowers.