The Financial Times wrote about the astonishing amount of commercial debt coming due in 2012. In addition, all the five to ten year leases that were written at the height of the market (2007), expire over the next five years.
Facts to Consider:
US commercial property values have dropped 42% since 2007.
“A large majority of loans originated in 2007 are currently under water.”
Approximately $233B in CMBS loans were originated in 2007, compared with $32B in 2011.
There are $69.9B of CMBS loans set to mature in 2012.
“It is unclear where the capital will come from to refinance all of the 2007 loans.”
A tremendous buying opportunity approaches as billion of distressed debt will be liquidated.