Smaller banks reveal ripple effects of commercial real estate woes

Apr 18, 2024
Some types of CRE are hurting more than others. A steep downturn could cause pain to regional banks as well as property owners.
Small, local banks might have up to 50% of their portfolios in CRE, says Suri Sharma of  Morningstar. But some subsectors of the field, like industrial property, are strong.
Andrew Caballero-Reynolds/AFP via Getty Images

Movie theaters aren't going anywhere, and it's partially due to their weird architecture

Apr 17, 2024
With sloping, concrete floors and huge, windowless rooms, movie theaters are not the easiest properties to convert.
Ticket sales at movie theaters are still down from pre-pandemic times.
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Commercial construction has hit a brick wall. Why?

Mar 13, 2024
Factors like high interest rates, tight credit and workers continuing to work from home are all hitting commercial construction demand.
Factors like high interest rates, tight credit and continued remote work are all hitting commercial construction demand.
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How worried should we be about regional banks and commercial real estate?

A report from Moody’s Analytics finds there's trouble ahead, but it's more nuanced than a banking collapse due to empty offices.
New York Community Bancorp is only the latest regional bank to raise concerns about ties to commercial real estate.
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Vacant office buildings create a tax revenue problem for cities

Feb 16, 2024
Take Boston. Over the next five years, that city could face a tax revenue shortfall to the tune of $1.2 to $1.5 billion, according to a new study from the Boston Policy Institute.
Over the next five years, Boston could face a tax revenue shortfall of up to $1.5 billion.
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Foreign investors are cooling on U.S. commercial real estate

Feb 9, 2024
Some of the drop is due to high interest rates and economic problems back home. Office buildings continue a slow burn, one expert says.
The height of foreign purchases of U.S. real estate was in 2017.
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New York Community Bank's woes could signal trouble for other regional banks

Feb 7, 2024
A significant portion of NYCB's $252 million in losses last quarter came from losses on commercial real estate loans--a revenue source for other regional banks as well.
Last year, NYCB acquired Signature Bank after it failed. Almost a year later, the New York-based bank was given a junk credit rating by Moody's.
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For public good, not for profit.

Higher interest rates and troubled commercial real estate are piling pressure on regional banks

Jan 22, 2024
We'll be getting a sense of how they're doing as they report quarterly results this week.
A view inside a Silicon Valley Bank location in March 2023. Since the collapse of SVB, a lot of small and mid-sized banks have tried to stop depositors from pulling out their money by raising interest rates on deposits.
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With commercial real estate set for another tough year, some small banks are worried

Jan 17, 2024
Amid high interest rates and vacancy rates, lenders and regulators are concerned about the fallout when borrowers renew their loans.
Plenty of companies are planning to downsize their office space, which worries lenders that have a lot of commercial real estate debt on their balance sheets.
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A new wave of office downsizing could hit this year

Jan 16, 2024
Commercial leases are typically five years or longer, so those who signed before the pandemic might be making exit plans.
A recent survey of 500 businesses found three-quarters of them plan to shrink their offices this year, according to data from Robin, a flexible work software platform.
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