New York & Tri-State CRE News In Your Inbox.

Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.

Sub Markets

Property Sectors

Topics

New York & Tri-State  + New York  + Finance  | 
Commercial property prices have declined by an average of 15% since a year ago, according to Green Street

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. 

Connect

Inside The Story

About Emily Fu

Emily Fu is Content Director of Connect Commercial Real Estate, where she covers the east coast markets, including New York, Boston & New England, and DC & Mid-Atlantic markets. She produces daily news stories as well as longer-form content, ranging from Q&As to thought-leadership pieces. She also writes feature stories for Connect Money. With previous stints at Reuters, Seeking Alpha, and Commercial Observer, Emily has covered the finance side of the commercial real estate industry, technology, media, telecom (TMT), and fashion. She attended the Columbia Graduate School of Journalism and currently resides in Manhattan.

  • ◦Financing
New call-to-action
New call-to-action
New call-to-action
New call-to-action