Office market troubles on the rise as loan payoff rate sinks below 70%

A credit crunch for landlords with maturing mortgage debt on office buildings has dropped the rate of timely loan repayments to below 70%, according to Deutsche Bank researchers.

That’s a sign of mounting stress in the estimated $3.2 trillion U.S. office market as landlords with typical 10-year property loans face tighter credit conditions and higher rates as a wall of debt comes due.

“The…