Overview
For most of 2023, CRE delinquency rates have been creeping up as higher interest rates and the overall health of the macroeconomy have resulted in more distress, lower valuations, and tighter capital conditions.
So far just about $5.65 billion in loans have been modified for an extension in 2023. The term increase varies from loan to loan, but the bulk of these extensions were term increases of 1-12 months.
When analyzing loans that were modified as a result of a loan reaching its maturity date, a little more than half were extended by 1-12 months. The largest quarter for 1-12 month extensions upon maturity came in Q2 2023, where $957 million in loans were extended.
Here, Trepp examined loan modifications and their role in the 2023 CRE market.
Complete the form for access to Trepp's research.
Overview
For most of 2023, CRE delinquency rates have been creeping up as higher interest rates and the overall health of the macroeconomy have resulted in more distress, lower valuations, and tighter capital conditions.
So far just about $5.65 billion in loans have been modified for an extension in 2023. The term increase varies from loan to loan, but the bulk of these extensions were term increases of 1-12 months.
When analyzing loans that were modified as a result of a loan reaching its maturity date, a little more than half were extended by 1-12 months. The largest quarter for 1-12 month extensions upon maturity came in Q2 2023, where $957 million in loans were extended.
Here, Trepp examined loan modifications and their role in the 2023 CRE market.
Complete the form for access to Trepp's research.
