By Tiffany Moustakas, Editor at LinkedIn News
Despite some stock market gains this week for regional banks, there could be more pressure ahead because of commercial real estate, Bloomberg reports. After years of being big lenders to office and retail spaces, the rise of remote working altered values. Now, there’s nearly $1.5 trillion worth of commercial property debt up for repayment by the end of 2025, as well as higher interest rates that are decreasing property values. Some lenders like Pacific Western Bank are getting ahead of it by selling $2.6 billion worth of real estate construction loans to boost liquidity.
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