Commercial real estate is high among bankers’ ongoing debt concerns

Lenders continue to digest the long-term implications of distress in the banking industry precipitated by the recent failures of Silicon Valley Bank, Signature Bank and now First Republic Bank as the fallout focus shifts to potential trouble spots.

Signs point to increasing credit risk in commercial real estate loan portfolios, as recent skittishness around lending has compounded existing concerns. The CRE sector was already under pressure due to pandemic-induced trends such as the shift to remote and hybrid work that resulted in more unused commercial space, and Federal Reserve rate increases totaling 4.75% over the past year. ...
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RSK: If you have to refinance in the near future, best to get your ducks in a row and hopefully you have enough equity to meet the new standards of lending.