Top US Regulators Flag Increasing Commercial Real Estate Risks
- Delinquencies are low, but vacancies are rising, FSOC says
- Watchdogs are emphasizing risk management in oversight
A vacant office and retail building in San Francisco.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
The top US financial regulators say they are stepping up scrutiny of how exposed banks are to commercial real estate, as vacancy rates increase.
The Financial Stability Oversight Council said in a statement Friday that delinquency rates are low, but empty offices are on the rise. The group, which was set up after the global financial crisis, includes the heads of the Treasury Department, the Federal Reserve and the Securities and Exchange Commission.