The amount of commercial mortgage debt maturing is set to spike this year, when loans taken out during the height of the real estate bubble start coming due. Between 2015 and 2017, more than $300 billion will need to be refinanced.
That’s more than 2.5 times the amount that matured from 2012 to 2014, according to Trepp. This wall of maturities will be a real test of the recovery of the capital markets. Property values have rebounded in many parts of the country, particularly in so-called gateway cities, which are attracting foreign investment. Underwriting standards have also loosened amid growing competition from banks, insurance companies and conduit lenders, and interest rates are still low.