Austin CRE market to see $17.8 billion in loan maturities over the next five years

In the upcoming five years, Austin is poised to face the maturation of a substantial $17.8 billion in commercial real estate loans, with a notable chunk of over $5.2 billion scheduled for repayment in 2024 alone. Within this timeframe, Apartment and Hotel property types stand out, collectively constituting the majority of maturities at $3.3 billion and $783.7 million. The prevalence of Apartment loans is particularly pronounced, holding a dominant position by accounting for 63.4% of all maturing loans in 2024. We do not see much market risk here because Austin demonstrates its robust market strength through economic factors and demand drivers.

Relocations by companies have spurred job opportunities, population growth, and market expansion. In 2024, Hotels represent 15% of all maturing loans. Austin maintains a high ranking among major metropolitan areas for increased hotel demand, according to a ULI report. Currently ranked #6, Austin's hotels generate more revenue today than pre-Covid times. Office will also see significant maturities. Even though Austin’s strong economy will likely mitigate any broad defaults, individual assets can perform differently, so it is important to keep track of property financials and tenant shifts over the next few years.