CRE Loan Re-Defaults Hit Decade-High Levels
Loan modifications have surged in 2024, setting the stage for a record year in terms of total modifications.
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Loan modifications have surged in 2024, setting the stage for a record year in terms of total modifications.
With $5.9 trillion in commercial real estate debt currently outstanding, more than half of that total is set to mature within the next three years.
The major trouble is with single asset, single borrower structured loans.
Florida reported 70 commercial foreclosures, a 21% increase from August and 48% higher than in September 2023.
Osborne emphasized the importance of acquiring prime single-tenant properties on major thoroughfares, especially with pending legislation favoring such investments.
The question is, by how much will they fall?
Whether properties have unrealized gains or losses depends on when loans originated.
Fed rate cuts will help, but it’s unclear how much more the banks can expect in the future.
Things are improving but still far off pre-pandemic baselines.
Wage growth also came in stronger than anticipated.
Broker/President Ronald W. Osborne represents both buyers and sellers of commercial properties of all asset classes and types, focusing primarily on privately owned properties in South Florida, ranging in value from $1 to $10 million.
Sperry – RJ Realty
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954.381.0412
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admin@RJ-Realty.com