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S& Global Platts Crude & Refined Products Market

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See the Big Picture for Commercial Real Estate in 2025

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Big Picture for Commercial Real Estate in 2025: Weathering the Storm

The commercial real estate (CRE) market remains under stress, but it seems likely that losses from CRE loans will surface over the next few years, rather than all at once as some have feared. The market's mettle will be tested as many borrowers seek to refinance loans maturing in the next year. Interest rates are unlikely to fall enough to reach the same levels as when the loans were originated, resulting in a higher debt service for borrowers, if credit is available at all. Concerns about the office real estate sector remain high, particularly for older buildings where few employees have returned to work in person. High interest rates, low valuations and increased scrutiny of the sector will prove worrisome for the coming quarters. 

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