31 October 2023
Lending for commercial real estate has nosedived amid rising interest rates, marking a grim period not seen since 2011. Banks are pulling back, debt markets are stagnant, and property values are under scrutiny. This pullback in lending is hitting all sectors, especially offices, with refinancing becoming costlier and new developments stalling. The market is facing its most significant challenges since the 2009 downturn, with recovery prospects bleak.