Signs of Stress in Commercial Property
March 28, 2023 | Matt Phillips | Axios
Stress is growing in the commercial property market.
Why it matters: Everyone is watching commercial property, given how reliant it is on some of the same regional banks that have been under pressure since the collapse of Silicon Valley Bank.
Driving the news: One indicator comes from the market for bonds built out of commercial mortgages, known as commercial mortgage-backed securities (CMBS).
How it works: Prices for CMBS — some of which are backed by office buildings that much emptier they used to be — have plunged recently, as investors have started to see them as riskier bets.
