
Thursday Mar 20, 2025
Office CMBS Distress Soars; Data Centers Face Energy Challenges
In today's episode, we delve into the alarming rise in distress rates for office CMBS loans, reaching a record 19.3% in February 2025, and explore the implications for the commercial real estate market. We also examine the surging demand for data centers driven by AI and cloud computing, and the resulting energy challenges. Join us as we discuss the potential economic impacts and innovative solutions being explored to address these pressing issues.
Sources:
https://www.trepp.com/trepptalk/topic/cmbs
https://commercialobserver.com/2025/03/special-servicing-rates-increase-office-retail-transfers-trepp/
https://commercialobserver.com/2025/03/cre-clo-distress-rate-reaches-record-16/
https://www.commercialedge.com/blog/national-office-report/
https://commercialobserver.com/2025/03/525m-cmbs-loan-150-east-42nd-street-lands-extension/
https://www.altusgroup.com/research/cre-this-week/
https://fred.stlouisfed.org/series/DRSFRMACBS
https://www.trepp.com/trepptalk/topic/cmbs-news
https://urbanland.uli.org/capital-markets-and-finance/march-economist-snapshot-downtown-office-distress-creates-megascale-opportunities-for-investors
https://fred.stlouisfed.org/series/DRCRELEXFACBS
https://therealdeal.com/san-francisco/2025/03/14/zappettini-family-defaults-on-mountain-view-tech-campus/
https://crenews.com/2025/03/19/sale-of-168-5mln-cmbs-loan-on-manhattan-office-results-in-88-41mln-loss/
https://therealdeal.com/tag/cmbs/
https://www.businesswire.com/news/home/20250317976495/en/KBRA-Assigns-Preliminary-Ratings-to-Benchmark-2025-V14
https://www.credaily.com/market/national/
https://www.themiddlemarket.com/feature/vacant-to-vibrant-the-office-to-housing-investor-hustle
https://www.fitchratings.com/research/structured-finance/fitch-to-rate-bx-commercial-mortgage-trust-2025-spot-presale-issued-19-03-2025
https://www.propmemo.com/p/have-cap-rates-peaked
https://www.fitchratings.com/research/structured-finance/fitch-downgrades-msc-2021-l6-19-03-2025
https://www.globest.com/2025/03/14/sl-green-and-rxr-strike-cmbs-loan-deal-on-nyc-building-with-12b-in-debt/?amp=1
https://www.powermag.com/navigating-the-energy-future-of-data-centers/
https://www.globalccsinstitute.com/resources/insights/role-of-ccs-in-us-data-centre-decarbonisation/
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https://www.businessrecord.com/new-jll-report-illustrates-growth-in-data-center-activity/
https://blog.scottlogic.com/2025/03/18/insights-on-ai-sustainability-at-data-centre-world-2025.html
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https://www.businesswire.com/news/home/20250314090199/en/Hyperscale-Data-Centers-Industry-Report-2025-with-20-Company-Profiles-including-Broadcom-Cavium-Cisco-Systems-Dell-Ericsoon-HPE-IBM-Intel-Lenovo-NVIDIA-Quanta-Computer-more---ResearchAndMarkets.com
https://facilityexecutive.com/shaping-the-future-5-trends-that-will-transform-the-building-industry-in-2025/
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https://www.prnewswire.com/news-releases/empowering-sustainable-cloud-computing-mitac-delivers-energy-efficient-server-innovations-at-cloudfest-2025-302396674.html
https://www.statista.com/statistics/1560260/electricity-consumption-forecast-data-centers/
https://www.bclplaw.com/en-US/events-insights-news/the-data-center-power-crunch-how-businesses-and-governments-are-addressing-energy-demands.html
https://www.openpr.com/news/3927197/leading-growth-driver-in-the-micro-data-center-market-in-2025
https://www.itprotoday.com/ai-machine-learning/us-ai-data-center-growth-politics-and-policies-of-supplying-power
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https://www.rcrwireless.com/20250320/fundamentals/ai-data-centers-3
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https://www.businesswire.com/news/home/20250319165036/en/Succeeding-in-the-Hybrid-Cooling-Market-for-Data-Centers-Balancing-Soaring-Computing-Demands-with-the-Urgent-Need-for-Energy-Efficiency-2025-Industry-Report---ResearchAndMarkets.com