Banking Crisis Threatens Commercial Real Estate Market

Commercial real estate owners are facing a banking crisis that could make their situation worse. The Federal Reserve's aggressive campaign to raise interest rates has already put pressure on property owners, and now beleaguered banks, especially smaller ones, could get more aggressive with lending arrangements, giving landlords even less room to breathe as they try to refinance a mountain of loans coming due. This year, roughly $270 billion in commercial mortgages held by banks are set to expire, according to Trepp, and $1.4 trillion over the next five years.