AEW has released its first global Debt Funding Gap (DFG) analysis, which provides insights on the relative refinancing challenges faced by three key regions. The comprehensive study utilized a standardized methodology, incorporating the best available local data on loan maturities, originations and refinancing assumptions.
Key findings from the global comparison indicate that Europe leads with the largest DFG on a relative basis, standing at 16 percent of loan originations, closely followed by the United States at 14 percent, with Asia Pacific remaining relatively immune.
Office loans consistently emerge as the primary concern across all three regions, followed by multifamily and retail sectors, which experienced significant capital value declines during the recent economic cycle.
In Europe, Germany and the Nordics exhibit the highest DFGs at more than 22 percent and 18 percent, respectively, while the United Kingdom and southern Europe are best placed at 9 perc
