Economic headwinds persist as 43% of small businesses struggle to pay rent, while charge-off rates on commercial real estate loans surge to nearly twice their 2020 peak levels. This trend, exacerbated by elevated interest rates and depressed asset valuations, underscores ongoing challenges in the real estate market and broader economic conditions.
BREAKING: 43% of small businesses were unable to pay their rent in full in April due to economic headwinds.
That’s the highest rent delinquency rate since March 2021, per Bloomberg.
— unusual_whales (@unusual_whales) April 29, 2024
Rising CRE Charge-Off Rates
Charge-off rates on commercial real estate loans are almost twice as high as the peak levels of 2020.
With interest rates remaining elevated and valuations for certain asset classes being depressed, this issue may continue to grow.
Charge-off rates… pic.twitter.com/kThGvPuXgF
— Reef Insights (@ReefInsights) April 16, 2024