Some of the largest U.S. banks singled out office commercial real estate on Friday as an area of growing concern, with property values falling and more borrowers defaulting on their loans amid rising interest rates and a slowing economy.
"Weakness continues to develop in commercial real estate office," Wells Fargo Chief Executive Charlie Scharf said on a call with analysts. The bank set asidein the first quarter for credit losses, mainly driven by expectations of higher CRE loan losses.
Loans backed by offices make up the biggest share of the maturing debt load, followed by multifamily and retail properties. The question now facing many borrowers is whether they can refinance or restructure loans to avoid default, bankers and analysts said. Older properties with high vacancies face the greatest refinancing challenge, they said.
As the epicenter for the technology industry downturn, California's CRE market has been hit hard. San Francisco and Los Angeles had an average office vacancy rate of 21.6% in the first quarter, according to data from Cushman & Wakefield. Loans for San Francisco offices now face the highest risk of default of all U.S. metro areas, according to Trepp.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Kingwood Big Band’s ‘Black and Bling’ dance returns Friday nightThe music will feature ballroom, Latin, swing, and pop tunes from the golden years.
Les mer »
Milquetoast & Co. Is Back With New Music and Live Show on FridayMilquetoast & Co. is back with a new album and live show at the Mercury Cafe.
Les mer »
Blink-182 To Play Coachella Friday In Unexpected AppearanceBlink-182 will hit the stage tomorrow night as a last-minute addition to the 2023 Coachella Valley Music & Arts Festival, marking Tom DeLonge, Mark Hoppus and Travis Barkerj’s first appea…
Les mer »
Art on the MART's glowing return to the Merchandise Mart starts FridayIt's unveiling the art programming for 2023 starting with artist Derrick Adams' projection creation Funtime Unicorn: Ruby Rides Through Four Seasons. It's described as a celebration of 'Black joy, love and play.'
Les mer »
Minka Kelly Details ‘Toxic’ Romance With ‘Friday Night Lights’ Co-Star Taylor Kitsch“When my relationship with Taylor became toxic, I had no one to turn to,” the actor wrote in her upcoming memoir 'Tell Me Everything.'
Les mer »
UTSA football spring game set for Friday night at AlamodomeThe UTSA Roadrunners are holding their annual spring game this Friday night at the Alamodome.
Les mer »