Demand for office space has plummeted post-pandemic, leading to high vacancy rates. Financial experts worry about bank losses if commercial real estate loans face delinquencies upon maturity by 2025.
Around 20% of $4.7 trillion commercial mortgage debt is due this year. Commercial real estate loans make up a quarter of lenders' assets, increasing concerns about potential bank failures.
Kenneth Rogoff notes that losses from commercial real estate investments can lead to significant debt hits, but such events may not instigate a full-scale financial crisis given the current stable global economic conditions.
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