Delinquent loans are ticking down, but the volume of charged-off loans is rising and economic uncertainty has made some banks and borrowers hit “pause.” Welcome to the 2025 commercial real estate lending market.
Construction cranes everywhere. Big tenants’ space backfilled when they move to a new tower. If you didn’t know better, Boston’s office market might seem like it’s humming along in a strong economy.
Greater Boston has the fourth riskiest loans on office properties among major U.S. metros, with nearly 30 percent falling into a category with elevated risk of default.
CMBS delinquencies have seen big spikes in the Springfield area but largely spared the Greater Boston commercial real estate market so far amid a surge in COVID-19 pressures on the retail and hotel sectors.
