Regulators Seek Lenders' Aid in Easing Commercial Real Estate Stress

US bank regulators are urging lenders to work with credit-worthy borrowers facing stress in the commercial real estate market. The guidance recommends short-term loan accommodations, such as deferring payments or accepting partial ones, to help property owners cope with the pressure caused by soaring borrowing costs and tenant pullbacks. Lenders will face challenging negotiations as nearly $400 billion of commercial real estate debt matures this year, with distressed commercial property assets reaching nearly $64 billion in Q1 2023.