CMBS Refinancings at Risk as Empty Offices Become a Wasteland
- Over $7 billion in CMBS office loans mature in next 12 months
- Some will struggle to refi amid lease expirations: Moody’s
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More than $7 billion of loans tied to office properties that were bundled into bonds are coming due over the next 12 months, and many of them won’t be able to refinance.
The problem loans mature right around when tenants in the offices are due to renew -- or end -- their leases. That may unsettle investors in commercial mortgage-backed securities, analysts at Moody’s Analytics warned this week. The risk is especially acute for buildings in regions where there are still high office vacancy rates and continuing rent declines.