Commercial real estate lenders have rolled a record $384 billion in loans into 2025, continuing the industry’s strategy of extending debt rather than forcing resolutions.

A Growing Trend

A new report from Colliers reveals that $384 billion in CRE loans originally set to mature before 2025 have been postponed, marking a 42% increase from last year’s $270 billion. This deferred debt now accounts for about 40% of the $957 billion set to come due in 2025.

Why It’s Happening

The cycle of loan extensions shows no signs of stopping. Many borrowers are still unable to refinance under today’s higher interest rates, and lenders remain hesitant to foreclose. “We are not done with extend-and-pretend,” says Aaron Jodka, Colliers’ Director of Research for U.S. Capital Markets.

Who’s Extending—and How Much?

Even as some property sectors stabilize, refinancing remains a challenge for loans originated at pre-pandemic, low interest rates. To avoid write-downs, lenders are granting short-term extensions, typically between one and three years.

• Multifamily: Led all sectors with $97 billion in loan extensions, covering roughly one-third of 2025 maturities.
• Industrial: Had the highest proportion of extended loans, with 55% of 2025’s maturities rolled over from prior years.
• Office: Saw $85 billion in loan extensions, representing 45% of the $187 billion due this year.

Real-World Impact

Just last month, over $1 billion in Manhattan office loans were extended, including a $525 million CMBS loan tied to 150 E. 42nd St. The three-year extension signals that lenders still see value in major urban assets, even if current market conditions don’t support a full payoff.

The Bottom Line

The debt problem isn’t disappearing—it’s just being postponed. While foreclosures are rising, a widespread market collapse has yet to unfold. With another $663 billion in CRE debt maturing in 2026, lenders may continue this cycle of extensions. As Jodka puts it, “It’s somewhat like a carousel… record-setting maturities year after year.”