Reported 29 days ago
US regional banks are experiencing increasing stress in their commercial real estate (CRE) portfolios due to a rise in non-performing office loans, as remote work remains common. Analysts have noted that while rate cuts could alleviate some pressure on other segments of CRE, the unique challenges posed by hybrid work arrangements are likely to persist. With around $950 billion in CRE mortgages set to mature in 2024, banks face potential defaults and increased strain on their balance sheets, further complicating the situation.
Source: YAHOO