Reuters
- Commercial real estate will finally face its reckoning in 2024, Capital Economics warned.
- That's because many property owners are choosing to "extend and pretend" their debts are fine, the firm said.
- But there's $2.2 trillion of CRE debt coming due by 2027, which could bring a wave of distress.
This year will be when the distress brewing in commercial real estate finally reaches its breaking point, according to Capital Economics.
The research firm pointed to pessimism that has clouded the commercial real estate sector for the past year. Commentators have been warning of a crash, thanks to tightening credit conditions as a wave of debt from property owners comes due.