The single greatest financial challenge for the office market is the looming
“debt cliff.” As shown in thechart below, a significant volume of office loans are set to mature from 2025 to 2027. This represents aperfect storm for many owners, as much of this debt was originated in a low-interest-rate environment. When borrowers attempt to refinance these loans today, they are facing a 75% to 100% jump in debt service payments, which is creating a wave of financial distress and forcing difficult choices for bothowners and lenders.