Moody's: $17B in mortgage bonds backed by office buildings coming due in 2023 - Silicon Valley Business Journal

  • 📰 svbizjournal
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 59%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Office building commercial real estate loans, maturity extensions and potentially even maturity failures could become commonplace amid weak office market performance and interest-rate hikes.

That's according to a recent report by New York-based Moody's Analytics, which also noted office building commercial real estate loans, maturity extensions and potentially even maturity failures could become commonplace amid weak office market performance and interest-rate hikes.

The average vacancy rate nationally in the fourth quarter ticked up to 18.7%, according to Moody's, still short of the record-high 19.7% vacancy observed in 1991 but approaching that figure. The vacancy rate in Q4 also surpassed vacancy rates observed earlier in the pandemic, with the previous pandemic high being 18.5% in Q3 2022 and in Q2 2021, according to Moody's data.

He said it may become difficult for some borrowers to do a loan workout on mortgages for office buildings coming due soon. They may require an equity infusion, especially with office building values declining and interest rates on the rise. Li said the expectation is that tech companies will continue to put space on the market in the coming months and quarters, and other industries will likely begin subleasing their spaces in greater numbers, too, as they face economic uncertainty.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 334. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Moody's: $17B in mortgage bonds backed by office buildings coming due in 2023 - Dallas Business JournalSome $17 billion in mortgage bonds backed by office properties is coming due this year, in an environment where the outlook for the U.S. office market is cloudier than ever and companies continue to shed office space to cut costs.
Source: DallasBizNews - 🏆 525. / 51 Read more »

Moody's: $17B in mortgage bonds backed by office buildings coming due in 2023 - Phoenix Business JournalSome $17 billion in mortgage bonds backed by office properties is coming due this year, in an environment where the outlook for the U.S. office market is cloudier than ever and companies continue to shed office space to cut costs.
Source: phxbizjournal - 🏆 254. / 63 Read more »