Opinion: Is CRE Lending The Next Time Bomb For The U.S. Financial System?
Allwork
JULY 1, 2024
The commercial real estate (CRE) sector faces notable risks with $1.6 trillion in loans maturing soon and significant exposure in regional and smaller banks. Despite low delinquency rates and conservative loan-to-value ratios, risks are heightened by interest rate fluctuations, structural changes in office demand, and potential fallout for local governments reliant on CRE taxes.
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