Office Property Refinancing to Require More Equity by 2027
Most office loan holders will face capital gaps as $22.2 billion in commercial debt reaches hard maturity in 2027.
Updated on Oct. 29, 2026 in Commercial
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Commercial real estate borrowers face a significant funding hurdle as $22.2 billion in office loans approach their hard maturity in 2027. A vast majority of these loans will require additional equity injections to refinance under current market rates.
Why it matters
Higher prevailing interest rates have created a funding gap for property owners, making it difficult to pay off maturing debt without providing extra cash. This refinancing challenge could pressure commercial property values and credit access across the broader real estate market.
Commercial office loans account for $22.2 billion of the $61.1 billion in private-label CMBS reaching hard maturity in 2027. In September 2026, the overall CMBS delinquency rate rose 17 basis points to 8.02%.
The details
When a loan reaches hard maturity, the borrower must settle the debt in full, which usually requires securing a new loan. Because current market interest rates often exceed the rates on existing loans, the new financing frequently covers a smaller portion of the property value. To bridge this gap, borrowers must contribute additional personal or investor equity to satisfy lenders and successfully refinance.
Timeline
The CMBS delinquency rate rose to 8.02% in September 2026.
Private-label CMBS loans totaling $61.1 billion reach hard maturity in 2027.
Money Landscape
The commercial real estate sector is navigating a period of tight credit as delinquency rates climb toward historical benchmarks. This trend reflects the broader struggle of office property owners to adjust to an environment of higher borrowing costs.
Property owners and investors should review their loan schedules and consult with a commercial lending professional to explore refinancing options well before maturity dates. Identifying potential funding gaps early is essential for evaluating whether to sell, restructure, or contribute capital to a project.
The takeaway
Commercial borrowers face a tightening window as 2027 debt maturities approach, requiring careful capital planning to meet refinancing thresholds. Consult with a qualified financial professional to assess how current interest rate levels might impact your specific real estate debt obligations.
Further reading
Learn more about debt and property trends in our Commercial section.
Source note: This article includes information reported by TokenPost.
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