Faced with questions from analysts about their exposure to commercial real estate (CRE) and potential of losses, executives at Wells Fargo & Co, Citigroup Inc and JPMorgan Chase & Co said conditions were getting worse for the sector.
Banks represent 54% of the overall $5.7 trillion CRE market, with the small lenders holding 70% of CRE loans, according to Citigroup analysts. More than $1.4 trillion in U.S. CRE loans will mature by 2027, with some $270 billion coming due this year, according to real estate data provider Trepp.
