Commercial real estate has been in crisis since covid started.
Higher interest rates are the final nail in the coffin. Commercial estate is generally bought through variable rate mortgages, not fixed ones.
This means that at the same time lenders are under a deadly combination.
On one hand, higher rates means that owners need to raise rent fees (which they could for more than a decade consistently) to pay down their much expensier mortgages.
On a second hand, there's no market for their property, and if there is, it's at way reduced prices than it was before.
Third, the property value crashes, thus putting even more pressure on these mortgages to be refinanced with banks unwilling to come to terms and negotiate.
This could be the start of the real state crisis every body was anticipating for some time.