Commercial Real Estate Faces Impending Default Wave and Lender Rejection
Billionaire investor Howard Marks has warned of a wave of mortgage defaults in the commercial real estate sector, which could add stress to the US banking sector. The commercial real estate market has become investors' newest concern due to higher interest rates, tighter lending standards, and work-from-home trends. Nearly $450 billion in commercial real estate debt is due to mature in 2023, which could raise hurdles for big property owners as they seek to refinance a pile of loans. However, Marks stressed that he's not sure if banks will suffer losses on their commercial property loans, or what the magnitude will be.