Lenders and Investors Worry Over Commercial Property Loans Amidst Bank Crisis and Remote-Work Trend.

Lenders are closely monitoring over 1,100 commercial property loans backed by almost $23 billion in commercial mortgage-backed securities in the Dallas area due to declining property values and concerns about a pending recession. Office buildings are facing slower leasing and higher vacancy rates since the start of the COVID-19 pandemic, and higher interest rates and tighter lending standards have put even more pressure on some commercial properties. Lenders are scrutinizing two of the largest Dallas area properties, the 2100 Ross office tower and the Mercantile Place on Main apartments, due to occupancy and value concerns. Credit analysts are closely monitoring office properties, which have seen weakened demand during the last few years.