Navigating Current Challenges in CRE Finance
CREFC's Viewpoint: This Is Not the Commercial Real Estate Industry’s First Rodeo
The CRE landscape is undergoing a pivotal shift, grappling with rising mortgage rates and property valuation uncertainties heightened by a global pandemic's economic aftermath. In this piece, CREFC delves deep into the cyclical nature of the CRE sector, highlighting the Federal Reserve's significant policy shifts and their implications. With insights from recent data on loan maturities and property valuations, we explore the looming risks, particularly for CRE debt markets. Furthermore, emphasizing the critical role of the CRE servicing community, this article underscores the importance of collaboration, communication, and strategic workouts for troubled loans.
From understanding refinance risks to the nuances of different lender types, CREFC's Report is a timely guide for industry stakeholders to navigate these uncharted waters. Drawing on decades of experience, CREFC and its members stand ready to support and offer insights to borrowers, lenders, and investors during these challenging times.
Download the CREFC Report
CREFC In the News
“Combining higher refinance rates with any degradation in the property performance suggests that many office owners will need to pay out of pocket to successfully refinance. That is likely to happen only for those well-occupied offices with long-term leases in places for which an owner doesn’t view moving forward as throwing good money after bad.” - Lisa Pendergast, Executive Director, CRE Finance Council
Read the full article from September issue of the Scotsman Guide.