US banks on alert over falling commercial real estate valuations

Financial Times/Staff/4-22-2023

“US banks are becoming increasingly worried about falling commercial property valuations and the risk they pose to lenders’ balance sheets, senior executives said this week. Office valuations in particular have been pummelled by rising interest rates and many employees’ preference for working from home since the coronavirus pandemic.”

USAGOLD note: These warnings keep popping up about trouble brewing in commercial real estate. As the old saying goes, where there’s smoke there’s fire. Half of the investors polled in a recent Bank of America survey identify commercial real estate “as the most likely source of a systemic credit event.”