Banks face $2tn of maturing US property debt over next three years

Banks will have to cut their exposure to commercial property because of a $2 trillion “wall” of property debt coming due in the next three years, according to a leading US brokerage.

Newmark, a real estate advisory and brokerage company, said the estimated $2 trillion of US commercial property debt maturing between this year and 2026 would have to be refinanced at much higher interest rates. The company estimates that $670 billion of the loans maturing by 2026 are “potentially troubled”. Real estate investors have been hit by rising interest rates, which have increased their financing costs and pushed down property values.

For buyers, including wealthy individuals and private equity debt funds, these sales are an opportunity to snap up loans or gain control of the underlying assets at depressed prices.

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