CRE Daily’s Post

According to 𝗠𝗼𝗼𝗱𝘆’𝘀 𝗥𝗮𝘁𝗶𝗻𝗴𝘀, loan modifications for non-owner-occupied CRE borrowers jumped 65 bps in the last 9 months, with smaller banks seeing a staggering 217% spike. Here’s why: 📈 𝗢𝗳𝗳𝗶𝗰𝗲 𝗱𝗲𝗹𝗶𝗻𝗾𝘂𝗲𝗻𝗰𝗶𝗲𝘀 climbed to 11.2% in November—3x higher than early 2023. 🏢 𝗠𝘂𝗹𝘁𝗶𝗳𝗮𝗺𝗶𝗹𝘆 faces mounting pressure as rising costs outpace slowing rent growth. 💰 𝗕𝗮𝗻𝗸𝘀 are nearing their limits, while private capital demands more and gives less. 𝗧𝗵𝗲 𝗯𝗼𝘁𝘁𝗼𝗺 𝗹𝗶𝗻𝗲? Delinquencies are rising, lenders are losing patience, and distressed assets are expected to hit the market hard in 2025. Is this the opportunity investors have been waiting for?

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