Commercial Mortgage Maturities

With over $1 trillion in commercial mortgages maturing in the next four years, we ask the question: How long can Extend And Pretend really be a viable strategy for lenders? The dearth of transaction volume does not provide strong support for valuation on a comparable sales basis and with rising vacancies and rental concessions undermining values from an income approach, how can values possibly go anywhere but down? Will L-T-V underwriting standards be relaxed for extensions? Will borrowers throw good money after bad paying down principle balances on their loans?