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Worst Year on Record for CMBS Office Maturities
In the last month of 2023, the overall CMBS office loan payoff rate was 40%, with small loans (<$10mm) at an 88% rate and large loans (>$100mm) at 29%, according to Moody’s report.
Only $319.8 million of CMBS office debt reached its fully extended maturity date, marking the second-lowest monthly amount for 2023. The Q4 payoff rate was 50.5%, and the year-to-date rate finished at 35.2%, making 2023 the worst on record for timely CMBS office loan payoffs.
Of the loans that failed to pay off at maturity in 2023, less than half secured formal extensions, while the remainder (approximately $3.1 billion) will likely involve workout/extension or default/liquidation scenarios, indicating potential trends in value discounts for troubled office assets.
- ◦Financing
