Investors are at a crucial point as trillions of dollars of commercial real estate loans are coming due worldwide, creating both challenges and opportunities for real estate owners.

While higher interest rates have changed market conditions, private investors still have multiple options available—from traditional financing to innovative restructuring approaches.

More than $3 trillion of real estate assets globally have debt that will mature by the end of 2025.* Based on average loan-to-value (LTV) ratios across global CRE markets, these loans total an estimated $2.1 trillion with more than 75% based in the U.S. The multi-housing/living sector is expected to account for 25% of upcoming loan maturities globally, followed by office assets at 23%.

For investors in North America, the U.K., Germany, and other large markets, various debt and equity structures offer different upsides. But as private investors brace for more volatility in the short term—driven by geopolitical and geoeconomic factors—it’s essential to analyse all related factors from current asset values and loan costs to sponsor leverage and interest coverage ratios (ICR).

Here are some of the strategic options for private investors looking to make smart decisions as their loans come due.

Recapitalising through one or more equity sources is another avenue for private investors. Preferred equity and mezzanine financing are two options for those looking outside of the traditional debt markets.

For those who plan to wait out the current market uncertainty, equity partnerships provide necessary capital while helping share the risk. 

In 2023’s tight capital markets environment, JLL helped a boutique real estate investment firm secure a strategic joint venture (JV) partnership to revitalise a 176-unit Texas apartment complex. The joint venture provided $1.5 million for property improvements, enhancing both facilities and curb appeal.

JVs may be relevant for situations where significant capital injections are needed to execute new business plans, such as redeveloping assets. But JV partnerships can be a more difficult fit for some private investors due to long-term commitments, uneven contributions, and potential conflicts of interests. In cases where private investors are looking to take a step back from daily operations, working with a family office is another means of managing financing pain points without giving up property ownership.

Across all markets, private investors can invest directly or through family offices, and partner with well-connected debt experts to source capital from banks, insurance companies, and debt funds. Investors can additionally bolster their capital stacks by tapping into new equity sources with family offices as their fund managers. This gives property owners greater flexibility and more time to decide whether they want to do a complete loan refinance or extend their existing debt, such as with an equity funded paydown. Some investors may want to look at other options.

“There is a lot of liquidity for residential, logistic and hotel assets in the German markets,” said Dominik Rüger, senior director of debt and structured finance, JLL. “Private investors can use various debt combinations to reach their ideal leverage ratios.”

Knowing when to sell can be one of the toughest decisions for many investors and information is key. Intel such as detailed formulas based on current valuations and regional market dynamics with future projections using tailored proprietary data.

In the U.S., JLL's proprietary AI platform, Horizon, tracks over 1.5 million properties, including detailed debt maturity data. This technology, combined with real-time market insights from over 1,500 monthly lending bids and quotes, gives investors an informed picture of both current conditions and emerging trends.

Partial sales and other disposition strategies offer options to private investors looking to recapitalise without taking on additional leverage. Investors with multi-asset portfolios can sell underperforming properties while keeping their crown jewels. For owners looking to sell stakes in a single asset, or perhaps sale-leasebacks can allow them to maintain their operations while simplifying financial obligations.

Those looking to diversify their portfolios and raise equity for other investments can also explore different selling strategies to best suit their business needs.

With over $3 trillion in commercial real estate assets having debt coming due in 2025, many investors are weighing their next move, and the debt markets for refinancing are exceptionally robust. Success comes down to timing and strategy—whether that’s traditional refinancing, bringing in investment partners or exploring new approaches. The earlier you start planning, the more options you'll have. JLL’s global reach and deep market intelligence help private investors evaluate all options.

Ready to discuss financing options? Connect with a specialist here.

_{^*This data came from JLL Research’s Global Capital Outlook published in 2024. The report was refreshed in January 2025.}