Delinquencies on Office Property Loans at Banks Are at 8 Percent While Office Loans the Banks Sold to Investors Show 31 Percent in Trouble

On Friday, the Federal Reserve released its semiannual Supervision and Regulation Report on banks. Commercial real estate loans at banks – particularly on office properties – continued to rank high on the Fed’s list of concerns. The Fed included the chart above showing that delinquency rates on office property loans held by the banks had skyrocketed...