Commercial Property Financing Costs Soar

At the height of the boom years, many owners of office buildings, hotels, shopping malls and other commercial real estate financed their properties using five-year mortgages, most of which are set to mature next year.  But lenders are warning property owners that refinancing won’t be automatic, and the low mortgage rates in the headlines probably won’t apply to them anymore.  If properties are underwater, lenders are requiring owners to put in additional cash.  In other cases, lenders will offer to refinance, but at substantially higher interest rates.

Wall Street Journal   December 28, 2011