U.S. Commercial Real Estate Is Headed Toward a Crisis
Harvard Business Review
JULY 23, 2024
The risks of U.S. commercial banks being overexposed to commercial real estate (CRE) have intensified as the global pandemic upended long-held economic assumptions of perpetually subdued inflation, low interest rates, and in-office work. An analysis from The Conference Board suggests that in the next two years, more than $1 trillion in CRE loans will come due, and an increasing number of banks, mostly regional and community banks, risk having insufficient capital cushions.
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