Aareal Bank AG (0MG0.IL)

German property lender sees weakness in U.S. commercial real estate

A German bank that finances property worldwide is bracing for a possible hit from the U.S. office market this year as it looks for "solutions" with clients to keep loans from souring, its chief executive said. Banks and regulators around the world have identified commercial real estate as a weak link in global finance, with low occupancy rates after the pandemic and a surge in interest rates pressuring the sector. Jochen Kloesges, CEO of German bank Aareal, said the U.S. office market was challenging, though it should be seen in shades of grey rather than black-and-white.