Asset classes

Commercial real estate: Weathering the storm

October 31, 2023

A graphic of the $5.7 trillion U.S. commercial real estate market showing the types of institutions that hold loans and the kinds of properties they hold. The graphic shows that investor-owned offices account for $750 billion worth of loans, only 13.1% of the market. Of that, $339 billion is held by banks and thrifts, $161 billion is held by commercial mortgage-backed or asset-backed securities, $131 billion by life insurance companies, and $119 billion by other investors.   In Vanguard’s analysis, only $98 billion, or 13%, of this portion of the commercial real estate market would be subject to default in the event of a severe recession.


Bob Behal, CFA
Brian Monteleone
Vanguard Information and Insights

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