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REDDIT

Commercial real estate overexposure: Real risk?

S
Mar 24, 2025 · 11:39

I've been following Zion bancorporations for the last couple of months, particularly interested in the fact that they have $26 billion exposure in CRE, 440% of its $5.8 billion equity.

I'm curious about any opinions about the office building 'crisis' - is this overhyped? Or is this a legitimate bust concern due to high vacancy rates? Also JP Morgan issued a statement defending their exposure, saying it's an opportunity to convert office buildings into apartments or condos. I've also heard some opinions that a lot of office buildings simply aren't cost effective to convert into units.