$1 Trillion in Commercial Real Estate Debt to Come Due in 2 Years

Charlotte, NC, June 3, 2024-"The Conference Board is raising the alarm on commercial real estate noting that the worst is yet to come for the industry,” reports Truist. 

“Commercial real estate issues have been widely publicized ever since the beginning of the pandemic as work from home trends upended the office segment of the market. Conference Board Economists noted that roughly $1 trillion in U.S. commercial real estate debt will come due within the next two years, citing prices for office properties slumping 35% from its peaks. Additionally, Moody's earlier this year published a report indicating that they expect the value of these properties to fall an additional 26% over the two-year period the Conference Board Economists are citing. We would note to investors, however, that although these signs are troubling for the office segment, U.S. commercial real estate is a very broad category. Some segments, particularly the heavier commercial/industrial segments, are trending positively on the backs of manufacturing onshoring and domestic energy investment.”