Record High Office Lease Expirations Post New Threat to… | Stephens

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Institutional Equities and Research

Record High Office Lease Expirations Post New Threat to Landlords and Banks | The Wall Street Journal

Apr 12, 2022

A record amount of U.S. office space is hitting the market this year due to a jump in lease expirations, putting property owners in a bind and threatening to leave banks and other lenders stuck with more troubled loans.

Analysts will be keeping an eye on office loans when banks start reporting first quarter earnings in the coming weeks. Financial institutions with the largest exposures to the office market include Heritage Financial [stephens.us10.list-manage.com] Corp. and Eagle Bancorp [stephens.us10.list-manage.com] Inc., which both have more than 13% of their loan portfolios backed by office buildings, according to a report published Monday by financial services firm Stephens Inc.

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