– Across the Atlanta market, there are 151 office CMBS loans set to expire from now until the end of 2025, the total balance of these loans exceeds $4 billion dollars.
– Investors will have to make a choice whether to relinquish their properties or maintain their office assets within their investment portfolios. Some borrowers will seek extensions if they are committed to the property. Other owners will not be willing to put more money into a building due to a variety of factors including vacancy rate, strength of that particular market, and availability.
– The anticipation of these loans coming due has caused tenants to become more cautious about signing leases, and they are now leveraging their position to negotiate better lease terms and asking landlords to provide more financial information.
September 22, 2023