This might be a good opportunity to pick up office commercial real estate (CRE) loan and CMBS bargains from forced sellers.

With current banking sector pressures following the events at Silicon Valley Bank, Signature Bank, Credit Suisse and First Republic Bank, there are a number of highly motivated sellers of commercial real estate debt.

In some cases, high rates and reduced occupancy as a result of work-from-home trends may have created unanticipated portfolio damage for some lenders.

There are some forces that may support future value – such as bosses forcing employees back to the office – which may accelerate as employees have less negotiating power in a coming recession.

Aware of inflation and interest rate risk, buyers may also be able to protect themselves against future risks by buying exposures at good prices today.

There remain risks for the industry including an upcoming recession and longer term reduced need for office workers as a result of AI.

It would be important for buyers to pick the right assets and at the right prices.