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Finding the Hidden Risks and Opportunities of Office Lending

Since the pandemic's start, office real estate has been a topic of deep concern for the CRE market, as vacancy rates have increased to record levels, office transactions have stagnated, and values have declined. The underlying causes of the stress in the office market are no secret: rising interest rates and the persistence of post-pandemic work-from-home trends have been the driving force behind declining values. However, performance has varied as office owners compete for tenants in a shrinking demand pool. Lenders question how to identify the hidden risks in their office portfolio. What is the more significant driver of demand: Quality or location? How vital is idiosyncratic risk, like tenant industry exposure and lease turnover?

In this webcast, we will:

  • Look at how current market conditions have translated into performance in the office real estate market
  • Compare risk factors such as the age of the building and remaining lease terms at market and property level to understand better both systemic and idiosyncratic risks in the office market
  • Assess CRE lenders' needs and solutions to prepare them best to identify opportunities and risks based on structural, cyclical, and idiosyncratic risks influencing their office loan portfolio.