A Third of CMBS Office Loans Risk Default: Structured Weekly

About $52 billion, or 31%, of all office loans in commercial mortgage bonds were in trouble in March, according to KBRA Analytics.

That share is up from 16% a year ago, according to the firm. Some cities have bigger headaches than others, with Chicago and Denver offices having 75% and 65% in jeopardy, respectively.

The office sector is wrestling with twin challenges of low occupancy and rising interest rates that have pushed valuations sharply lower. Lenders are still absorbing losses and placing loans on watchlists, while borrowers have been extending loans in hopes that values will rebound.

Read More: CMBS ...