Office Loan Modifications Jump
Recent update from CNBC here:
The details:
Rising office loan modifications and delinquencies.
1.42B in office modifications in Q1 2024 vs. $117M in Q1
2023
"Government intervention may be needed".
See more on loan modifications stats in Commercial RE posted on this blog in April.
Weitz – I have a hard time seeing government intervention
just 15 years after the last bank crisis where the “too big too fail banks” became
even bigger. That said, memories are shockingly short and the importance of a
healthy banking sector can’t be understated in a system based entirely on debt. Time
will tell I suppose, but I’m guessing the political will to save banks won’t be
there.
I'd also suggest that the 'kicking the can down the road strategy' will eventually run out of steam. I don't want to say it won't work, but owners may find that getting cash out of their properties may be better than paying large fees/ interest rates and simply hoping things rebound soon.
For more help on Snohomish Commercial Real Estate, feel free to email or call me:
Weitz Commercial
Scott@WeitzCommercial.com
t: 306.306.4034
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