Risk of 1.5 trillion dollars, or 25%, of commercial real estate in the US facing a 'refinancing wall' by the end of next year.

September 2nd, 2024 10:32 JST (excerpt)
Approximately 95 billion dollars of US real estate is in distressed condition, or at risk of becoming so.
It is also pointed out that a large portion of the collective residences are currently underwater.
Owners of offices, collective residences, and other commercial properties (CRE) face the risk that 1.5 trillion dollars (about 219.6 trillion yen) of debt will come due by the end of next year, and about a quarter of that is feared to be difficult to refinance, as pointed out by Jones Lang LaSalle.

The increase in interest rates has caused an increase in funding costs for real estate owners, and the value of properties has decreased significantly. Many real estate owners who have had difficulty obtaining similar levels of borrowing due to decreased valuations have been forced to seek capital for securing new borrowings or expanding existing facilities (credit lines).