Extend and pretend? Why proactive reforecasting beats reactive fixes.

U.S. banks are rushing to modify commercial real estate loans as higher rates and falling values strain borrowers and balance sheets.

Loan modifications are up 66% year-over-year, according to the St. Louis Fed. Many involve extended terms, deferred payments, or lower rates — short-term relief that buys time but not certainty.

The reality: many properties financed during the zero-rate era are struggling to refinance under today’s conditions. As the 2025 maturity wall approaches, both lenders and borrowers are under pressure.

Here’s the risk: “Extend and pretend” can only delay the impact. Without real visibility into cash flow, expenses, and market fundamentals, deferrals can mask problems rather than solve them.

Here’s the smarter move:
✅ Stress-test reforecasting models for rate shocks and maturity scenarios.
✅ Track tenant rollover and rent assumptions against actual performance.
✅ Build transparency into reporting — lenders are watching closely.
✅ Shift from reactive term extensions to proactive financial clarity.

In a market defined by rising costs and shrinking margins, proactive reforecasting beats reactive fixes every time.

At Kardin, we help CRE teams build reforecasting discipline that keeps them ahead of the next maturity wave.

Learn how Kardin helps owners and managers navigate volatility:
👉 https://www.kardin.com