Silicon Valley Bank and Signature Bank went under just days apart, and after momentary panic, regulators swooped in last month. Although the broad economic implications are still being assessed, it looks like the collateral damage could be particularly painful for commercial real estate.
Long before these bank failures, commercial real estate on the office space side was already struggling with rising vacancies and falling property values as workers resisted returning to their nine-to-fives. Those commercial real estate troubles could be exacerbated if in the aftermath of bank failures lenders decide to tighten lending standards for commercial real estate [CRE] loans.
