Press Release|CMBS
KBRA Credit Profile Releases CREFC High-Yield, Distressed Assets, & Servicing Conference 2025 Recap
5 Mar 2025 | New York
KBRA Credit Profile (KCP), a division of KBRA Analytics, attended the Commercial Real Estate Finance Council’s (CREFC) annual High-Yield, Distressed Assets, & Servicing Conference, held in New York City on March 4. Over 300 commercial real estate (CRE) professionals attended the event, which comprised five panels and a one-one-one discussion.
Key Takeaways
- Persistent inflation concerns and the possibility of stagflation continue to weigh on market sentiment, highlighting the difficulty in predicting near-term interest rate moves.
- With a wave of maturities looming, attendees urged borrowers and servicers to initiate discussions early to help mitigate default risk and create opportunities for pre-emptive workouts.
- Office-to-residential conversions face feasibility challenges, while construction financing, especially for large projects, remains tight.
- Office delinquencies continue to lead defaults, and multifamily continues to attract investors even as margins are pressured by rising costs.
- Private credit providers are stepping in as banks reduce their CRE exposure, but underwriting standards have become more selective, and pricing remains elevated.
- Amid euphoric sentiment for data centers, panelists noted the importance of due diligence and prudent underwriting.
Click here to view the report.