According to a report by MSCI Real Assets, the number of U.S. distressed commercial real estate properties increased by 10% in the first three months of this year. The amount of trouble assets has grown to around $64B. The report highlighted the potential risks in the commercial real estate industry, as nearly $155B worth of assets are in trouble. - A considerable portion of the distress is caused by buildings that must be refinanced under strict lending restrictions in the coming months.
- The report said upgrading the potential risks to full-blown trouble would inevitably lead to increased distressed asset sales and declining prices.
- Around $23B worth of retail properties and $18B worth of office buildings were considered distressed by the report at the end of March.
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