With property values declining and worries about a pending recession, commercial real estate lenders are keeping a close eye on developments in Dallas and across the country.
In the Dallas area, lenders are tracking more than 1,100 commercial properties financed with almost $23 billion in commercial mortgage-backed securities, according to a new report by Morningstar Credit Information & Analytics LLC.
Some of the Dallas properties with potential problems are office buildings, which have seen slower leasing and higher vacancy rates since the start of the COVID-19 pandemic. Higher interest rates and tighter lending standards have put even more pressure on some commercial properties.
