Banks and other lenders using "pretend and extend" to cope with the mountain of maturing commercial real estate debt isn't an entirely bad idea, said Carl Schwartz of Herrick Feinstein. "All of the debt has to be extended until we have a market," he said. More than half of the $1.4 trillion of commercial-property debt is now under water, Schwartz said. There isn't enough credit out there to roll over the debt, he said, so the pretend and extend solution might be the right way to go.
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