‘The Most Chaos’: More Downward Pressure On Values As Short-Term Loans Come Due
June 8, 2023 | Dees Stribling | Bisnow National
U.S. commercial property values are sliding, and they are going to slide more this year and in 2024, as loans come due that cannot easily be refinanced. In one way or another, properties will eventually change hands at lower valuations, and not only office assets will be affected.
“Debt funds are the lenders who made the most aggressive loans in 2021 and 2022, when interest rates were so low, and they were typically short-term loans with very few covenants,” MSCI Chief Economist Jim Costello said during a June 7 panel at the National Association of Real Estate Editors conference in Las Vegas.
