In 2025, approximately $598 billion in U.S. commercial real estate debt is set to mature, with a significant portion in the multifamily sector. Property owners who purchased or refinanced during the low-rate years may struggle to secure favorable terms as interest rates remain high, potentially leading to more distressed sales as owners are forced to sell at a loss or face foreclosure.
While lenders have been offering extensions and forbearance to delay defaults, rising rates and economic uncertainty will increase pressure on borrowers. As maturing loans and high borrowing costs collide, distressed sales – particularly in the multifamily sector – are expected to grow. Buyers with dry powder may find opportunities to acquire properties at a discount, as lenders look to offload assets quickly after defaults.
I recently sold a multifamily property where the owner defaulted, and am closely tracking loan defaults, with more opportunities likely on the horizon this year.
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Jordan Lester, CCIM, MBA specializes in advising clients with the acquisition and disposition of multifamily investment properties. With a primary focus in Spokane County and an expert understanding of the latest market trends, Jordan is committed to maximizing his client’s financial goals to achieve their real estate objectives. To get in touch with Jordan, email jordan.lester@svn.com or call 509.496.6922