Commercial real estate may not be directly impacted by the bankruptcy of Silicon Valley Bank in and of itself. Nevertheless, it might lead to greater economic unrest and tightened credit standards, which might have an effect on commercial real estate.
Smaller banks may have a liquidity crisis, making it more difficult for them to lend to businesses, including commercial real estate developers and investors, if uneasy investors keep withdrawing money from smaller banks and moving it into safer investments like government bonds. If the demand for commercial real estate declines, this can cause a pause in new development projects or a drop in property values.