CRE Losses and Risks
Commercial Real Estate Losses and the Risk to Financial Stability
Source: cop.senate.gov
"The Congressional Oversight Panel's February oversight report, Commercial Real Estate Losses and the Risk to Financial Stability, expresses concern that a wave of commercial real estate loan losses over the next four years could jeopardize the stability of many banks, particularly community banks. Commercial real estate loans made over the last decade - including retail properties, office space, industrial facilities, hotels and apartments - totaling $1.4 trillion will require refinancing in 2011 through 2014. Nearly half are at present "underwater," meaning the borrower owes more on the loan than the underlying property is worth. While these problems have no single cause, the loans most likely to fail are those made at the height of the real estate bubble."