U.S. landlords face a major wall of maturities in the coming year, with multifamily buildings at the forefront.

Commercial real estate landlords are estimated to have roughly $1.5T of debt to come due by the end of 2025, according to JLL. The U.S. had $2.1T of commercial real estate debt set to mature between 2024 and 2025, but 30% of that was refinanced in the first half of this year, the firm found.

Apartment buildings make up roughly 40% of the debt maturing, as many investors took out three-year floating rate loans when rates were low during the first two years of the pandemic, Bloomberg reported.

The high interest rate environment that began in 2022 has made it challenging to bring on new equity and refinance loans, but rate cuts expected to start next week could help more borrowers secure deals and avoid going into default.

In the meantime, distress has already begun to unfold in the market. Roughly 7.4% of multifamily CMBS loans were delinquent or in special servicing as of June, up from 3% at the beginning of the year, according to CredIQ. The total CMBS space had a distress rate of 8.6% in the same month.