$875 Billion in Commercial and Multifamily Mortgages, Including 30% of Hotel Loans, to Mature in 2026
🏨 $875 billion in commercial and multifamily mortgages are due in 2026, with 30% being hotel loans. Many loans from 2016, originally priced at 4.5%, now face interest rates between 6% and 7%. NOI and expenses have shifted, with labor costs permanently increased, and insurance renewals rising 5-15% (25-50% in high-CAT areas). A 12% debt yield can fall to 8.5%. Deferred renovations affect refinancing, and owners should assess their real debt yield and refinancing needs.
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