BofA clients yank $451 million from real-estate stocks on property fears

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Bank of America clients have yanked $451 million from real-estate stocks as commercial property becomes investors' newest worry

Bank of America's clients pulled $451 million from real-estate stocks last week as troubles in the commercial property sector heat up.

"Outflows from real estate were the largest since July 2021 amid concerns around commercial real estate," bank's strategists led by Jill Carey Hall wrote in a Tuesday note. Worries about the health of the commercial property sector are building as it faces a string of headwinds, from higher interest rates and work-from-home trends to tighter credit conditions.

High borrowing costs and higher standards for obtaining loans — part of the fallout from the turmoil that hit banks in March — could raise hurdles for big property owners as they seek to refinance a pile of loans. Nearly $450 billion in commercial real-estate debt is due to mature in 2023, per data cited from Trepp by JPMorgan. That means a final payment on those loans is scheduled to be paid before the end of the year.

 

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