Support the fact-based journalism you rely on with a donation to Marketplace today. Give Now!

New York Community Bank's woes could signal trouble for other regional banks

Feb 7, 2024
A significant portion of NYCB's $252 million in losses last quarter came from losses on commercial real estate loans--a revenue source for other regional banks as well.
Last year, NYCB acquired Signature Bank after it failed. Almost a year later, the New York-based bank was given a junk credit rating by Moody's.
Spencer Platt/Getty Images

Higher interest rates and troubled commercial real estate are piling pressure on regional banks

Jan 22, 2024
We'll be getting a sense of how they're doing as they report quarterly results this week.
A view inside a Silicon Valley Bank location in March 2023. Since the collapse of SVB, a lot of small and mid-sized banks have tried to stop depositors from pulling out their money by raising interest rates on deposits.
Noah Berger/AFP via Getty Images

With commercial real estate set for another tough year, some small banks are worried

Jan 17, 2024
Amid high interest rates and vacancy rates, lenders and regulators are concerned about the fallout when borrowers renew their loans.
Plenty of companies are planning to downsize their office space, which worries lenders that have a lot of commercial real estate debt on their balance sheets.
David McNew/Getty Images

A new wave of office downsizing could hit this year

Jan 16, 2024
Commercial leases are typically five years or longer, so those who signed before the pandemic might be making exit plans.
A recent survey of 500 businesses found three-quarters of them plan to shrink their offices this year, according to data from Robin, a flexible work software platform.
Portra/Getty Images

In Shanghai, vacant storefronts abound, but it's still a struggle to find space

Jan 9, 2024
China's housing bubble has popped, and the commercial property market is going through a rough patch.
For lease signs are posted on an empty Shanghai coffee shop. The commercial property market is going through a transition after the city's severe pandemic lockdown.
Charles Zhang/Marketplace

Could commercial real estate still tank regional banks?

Dec 21, 2023
A new study says that 300 regional banks are at risk of collapse because of the high number of vacancies in office buildings.
The delinquency rate on office loans tripled this year, says Trepp's Stephen Buschbom.
Charly Triballeau/AFP via Getty Images

WeWork could declare bankruptcy anytime, but how is it still around?

Nov 1, 2023
The company has risen and fallen on its stylish co-working spaces, larger-than-life founder and ability to rake in — and spend — investors' cash.
WeWork’s business model has always been shaky, says professor Erik Gordon at the University of Michigan.
Justin Sullivan/Getty Images

For public good, not for profit.

Here's what might happen if all that open office space stays empty

One thing seems likely, says Lisa Knee of EisnerAmper: real estate is going to need new, creative investors to stay on track.
Office building vacancies are climbing, property values are sagging. That might have implications for all of the investors tied up in commercial real estate debt.
Andrew Caballero-Reynolds/AFP via Getty Images

San Francisco's mayor challenges the public perception of her city

San Francisco's empty office buildings and fleeing retailers have been in the news. London Breed challenges that narrative.
Increasing housing production, Mayor London Breed says, is one of her main focuses. She also says San Francisco has to get creative with how to repurpose vacant office space.
Justin Sullivan/Getty Images

The financial consequences of empty offices

Offices are at the epicenter of seismic pandemic shifts, per McKinsey's Aditya Sanghvi. They need to become places where people want to be.
Almost every company is reevaluating its relationship with commercial real estate, says Aditya Sanghvi of McKinsey.
Justin Sullivan/Getty Images