Refinancing Challenges Loom as Nearly $1 Trillion in CRE Loans Mature in 2025
DALLAS, TX / ACCESS Newswire / April 17, 2025 / As nearly $1 trillion in commercial real estate (CRE) loans are set to mature this year, economic instability is creating significant refinancing hurdles, particularly for multifamily property owners. Ann Hambly, CRE, founder and CEO of 1st Service Solutions, a Dallas-based borrower advocate, warns that this looming maturity wave poses a critical challenge to the CRE sector over the next two years and beyond.
"Lenders are exercising increased caution, expressing concerns about market volatility and fluctuating interest rates," Hambly stated. "Many owners are finding it difficult to secure refinancing, leading them to seek assistance in navigating their existing loan obligations."
According to the Mortgage Bankers Association (MBA), approximately $957 billion in CRE mortgages are maturing in 2025, with multifamily properties accounting for a substantial $300 billion. This sector faces the largest volume of maturing loans, followed by office buildings at $200 billion. The disparity between current interest rates and the lower rates secured by many maturing loans is exacerbating the refinancing challenge.
While loan extensions offer a temporary reprieve, they risk prolonging the issue into 2026 and subsequent years. Lenders are adopting a more conservative approach due to rising property ownership costs, including increased taxes, insurance, and maintenance expenses. Simultaneously, MBA data forecasts softening demand for multifamily properties, driven by demographic shifts and potential immigration policy changes.
"The confluence of these factors is prompting lenders to scrutinize loan applications more rigorously," Hambly explained. "It's not necessarily about property performance, but rather the altered market landscape."
However, Hambly emphasizes that property owners have options. They can explore loan extensions, negotiate discounts with existing lenders, or consider property sales. 1st Service Solutions assists owners in understanding current market dynamics and available solutions.
"Our expertise lies in our lender and servicer relationships," said Caitlyn Banegas, Director of Sales at 1st Service Solutions. "We provide critical insights into approval trends and servicer responses, empowering owners to make informed decisions."
The uncertain market conditions are causing significant stress for property owners. Hambly notes that proactive discussions about workout solutions can alleviate anxiety and provide a sense of direction.
"We prioritize our clients' well-being," Hambly affirmed. "If you're facing a maturing loan and are unsure of your next steps, we're here to offer guidance and explore your options."
Upcoming Webinar:
1st Service Solutions will host a webinar titled "CMBS 911 Special Servicing Unveiled: Is your CMBS property facing special servicing? Avoid the pitfalls." on Tuesday, May 13th at 11 a.m. CST. CEO Ann Hambly and her team will share insights on navigating special servicing and mitigating potential risks. Register at 1stsss.com/webinars/.
About 1st Service Solutions:
Founded in 2005 by Ann Hambly, CRE, 1st Service Solutions specializes in commercial real estate loan negotiations, serving clients across all sectors and loan types.
Contacts:
Rich Johnson
214-403-1832
rjohnson@incitusgroup.com
Sarah Parrot
(817) 756-7227
sparrot@1stsss.com
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SOURCE: Incitus Group, LLC
View the original press release on ACCESS Newswire
