{"id":42895,"date":"2023-12-05T13:56:07","date_gmt":"2023-12-05T11:56:07","guid":{"rendered":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/?p=42895"},"modified":"2025-11-06T13:11:08","modified_gmt":"2025-11-06T11:11:08","slug":"manhattan-leads-u-s-in-office-mortgage-maturities","status":"publish","type":"post","link":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2023\/12\/05\/manhattan-leads-u-s-in-office-mortgage-maturities\/","title":{"rendered":"Manhattan Leads U.S. in Office Mortgage Maturities\u00a0"},"content":{"rendered":"\n

<\/span>Key Takeaways:  <\/span><\/h2>\n\n\n\n
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  • Manhattan leads the nation\u2019s top markets with $56.7 billion in office loans due by the end of 2026  <\/li>\n\n\n\n
  • More than $46.9 billion of Manhattan Class A office loans are due by the end of 2026<\/li>\n\n\n\n
  • Manhattan also has the largest volume of maturing debt on Class B\/C offices across the U.S., with $9.72 billion in loans due over the next three years  <\/li>\n\n\n\n
  • Nationwide, office debt totaled $920 billion across the U.S. in October 2023  <\/li>\n\n\n\n
  •  Across the U.S., 32.7% of office loans are set to mature by the end of 2026 <\/li>\n<\/ul>\n\n\n\n
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    The challenges faced by the U.S. office sector are becoming increasingly more pronounced: According to a recent analysis by CommercialEdge, the commercial real estate data research division of Yardi, almost $150 billion in office building mortgages are set to mature by the end of 2024, with an even greater amount ($300 billion) set to mature by the end of 2026.\u00a0\u00a0<\/p>\n\n\n\n

    Furthermore, an in-depth examination of more than 80,000 office properties accounting for $920 billion in mortgage debt revealed a concerning trend: Approximately 16.1% of loans by dollar volume are set to mature by the end of 2024, and this number is expected to rise to 32.7% by the end of 2026.  <\/p>\n\n\n\n

    Notably, the center of this looming crisis is Manhattan, which leads the nation in distressed office properties, although the root causes of this distress are multifaceted. Of course, the rise of remote work has certainly prompted companies to reassess their space requirements, especially in primary office markets with traditionally lengthy commutes. <\/p>\n\n\n\n

    <\/span>Manhattan Leads U.S. in Maturing Office Debt by Dollar Volume  <\/span><\/h2>\n\n\n\n

    The national office vacancy rate surged to 17.8% in October 2023 \u2014 a stark 120 basis points increase year-over-year and a significant jump from the 13.4% pre-pandemic rate in January 2020 \u2014 and some of the most significant increases in vacancy rates were recorded in core office markets, such as Manhattan. For example, at the beginning of the pandemic, the market\u2019s vacancy rate stood at 7.9%, whereas it had 17.7% of its office space available for lease this October.  <\/p>\n\n\n\n

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