Maturity Looming for $16B-plus NYC Commercial-Backed CMBS Loans

At a time when refinancing is becoming a major challenge in part due to higher interest rates and recession anxiety, there are more than $16 billion in commercial mortgage-backed securities (CMBS) set to mature this year according to CMBS data provider Trepp.  The 2023 figure represents a nearly 30% increase of the $12.7 billion in CMBS loans that came due last year. Secured extension options by borrowers over the past three years partially contributed to the spike in maturities — an option that may no longer be available to some borrowers. For those borrowers that are able to secure new debt, the cost will be much more than the loans being replaced with the Fed continuing to increase interest rates to fight inflation. Alternative lenders are stepping in with the CMBS market slowing, albeit at a higher cost.