Priya Patel
Office building owners in the US are facing a significant amount of debt repayments in 2024, putting the economy at risk. Around $117 billion in commercial mortgages tied to office buildings need to be repaid or refinanced this year, with a large portion at risk of defaulting. Low interest rates at the time of taking out the loans and the use of interest-only mortgages have contributed to the financial trouble faced by owners. The pandemic has also played a role, as remote working has led to downsizing and decreased revenue. Moody’s Analytics estimates that owners of 224 out of 605 office buildings with expiring mortgages will have trouble refinancing.
– Office building owners in the US are facing a significant amount of debt repayments in 2024.
– Around $117 billion in commercial mortgages tied to office buildings need to be repaid or refinanced this year.
– Low interest rates at the time of taking out the loans and the use of interest-only mortgages have contributed to the financial trouble faced by owners.
– The pandemic has also played a role, as remote working has led to downsizing and decreased revenue.
– Moody’s Analytics estimates that owners of 224 out of 605 office buildings with expiring mortgages will have trouble refinancing.
