Part 4/4:
One of the primary concerns with the extend and pretend strategy is that lenders are tying up considerable resources in these loans. This limitation prevents banks from lending to new opportunities, putting pressure on their overall capital allocation. As commercial mortgage maturities peak around 2026, banks are expected to face an influx of potential defaults and asset returns.
Moreover, this situation varies from lender to lender. Larger banks with diverse asset portfolios—including retail, office, and multifamily properties—may