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Perspectives: New Contamination Rate Data Could Help Banks Better Assess Environmental Risk

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A “wall” of maturing commercial real estate (CRE) loans is approaching amid tumultuous conditions for office properties and other property types. Commercial property values at the end of 2023 declined 22% from their March 2022 highs due in part to rising interest rates, over-construction, and shifting occupancy trends. In this context, the assessment of environmental risk—and its potential to affect the already challenged valuation of a property during refina…

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