It's not surprising at all. One reason for the lower-than-expected level of distress is banks have been more willing to modify or extend their loans, allowing owners to hang onto their properties for longer. A report by the Federal Reserve Bank of New York estimates that the banking sector has $400B in near-term commercial real estate loan maturities on their books. As of Q4 2023, the maturity wall represents 27% of bank capital, up 11 percentage points from 2020, according to the report. In previous financial crises, distressed properties would have already worked their ways through the system, allowing opportunistic buyers to scoop them up on the other end. https://lnkd.in/ehYxYPMg