‘Zombie offices’ spell trouble for some US banks

Zombie Offices’ Spell Trouble for Some Banks

By Jeanna Smialek

Feb. 8, 2024

Bank tremors serve as a reminder: Just because a crisis hasn’t hit immediately doesn’t mean commercial real estate pain isn’t coming…

…In other cases, banks are using short-term extensions rather than taking over struggling buildings or renewing now-unworkable leases — hoping that interest rates will come down, which would help lift property values, and that workers will return.

“If they can extend that loan and keep it performing, they can put off the day of reckoning,” said Harold Bordwin, a principal at Keen-Summit Capital Partners, a distressed real estate brokerage.

Harold Bordwin, New York Times

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