The commercial real estate market, particularly office spaces, will face significant loan readjustments in 2024 and 2025. Landlords with high vacancy rates and rising interest rates will experience financial difficulties.
"2024 is the first year of this kind of tidal wave of loans readjusting in the office Market we'll see more loans readjust in 2025 which means now if you an office landlord and you're sitting on a property worth $10 million $100 million a billion do well if that property is 50% vacant you're not making as much money as you would like and if now your interest rates readjust on your debt well that means your costs are probably going to go up a lot because interest rates are a whole lot higher today than what they were a few years ago so now if you're an office landlord and interest rates start to readjust at a time where your revenues are not very high you can start to see why that's a problem"
