Measuring and Monitoring CRE Credit Risk

The commercial real estate market is notably sensitive to interest rate fluctuations, and the impact of recent hikes has been complicated due to the interplay of economic forces.

How can CRE fundamentals—ranging from the most recent base point for the cost of capital to property values, volume of transactions, demand shifts, potential delinquencies, and the need for debt restructures—be combined to form the new CRE base for the upcoming period?

We are committed to discussing the impact of interest rates on specific markets, demonstrating how our projections behave in a potential debt restructure, and identifying which risk metrics exhibited the highest degree of volatility following a year of interest rate hikes that influenced CRE lenders' decisions. The tension is high; being proactive in portfolio management is critical.

Presented By CoStar Risk Analytics