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A CRE Sunset? Commercial Real Estate Debt is at a Record High–and Rising

January 24, 2024

In this edition of Above the Line, we see a record amount of commercial real estate debt, a 29-year low in home sales volume, and Blackstone's significant investment in Tricon Residential.

Let's dive in. 

The Bill is Coming Due on a Record Amount of Commercial Real Estate Debt
Wall Street Journal
An in-depth analysis of the looming challenge in commercial real estate. In 2023 $541 billion in CRE debt came due, the highest amount ever for a single year. Commercial-debt maturities are expected to continue rising, with more than $2.2 trillion coming due between now and the end of 2027.

Home Sales Sink to a 29-Year Low in 2023
Home sales fell in December to the lowest level in more than a decade as demand continued to exceed the supply of listings for sale, pushing prices up to close out the year. Sales activity on a monthly basis was at the lowest level since August 2010.

Blackstone to take Tricon Residential private for $3.5 billion
Blackstone has strategically acquired Tricon Residential, purchasing all outstanding shares at a 30.35% premium. This move signals Blackstone's assessment of Tricon Residential as significantly more valuable than its book price.

REDD Accounting is a global firm specializing in property accounting and bookkeeping services for real estate companies. Whether you are a small-scale operation or managing a large portfolio of properties, we have the expertise and resources to support your unique needs.

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