T
he commercial real estate market is facing significant challenges, with rising loan delinquencies across key sectors. Unlike residential mortgages, CRE loans typically have shorter terms of five to seven years, increasing the risk of refinancing in the coming quarters and years. As a result, trillions of dollars in CRE loans will face higher interest rates, potentially exacerbating market stress.

    Delinquency rates on office properties are at an all-time high, while those for multifamily properties have doubled over the past 12 months. A closer look at each of the five main property sectors reveals their potential impact on the economy.