CRE Finance Council is a trade association that is...

  • Dedicated exclusively to the nearly $6 trillion commercial real estate finance industry
  • Committed to promoting strong & liquid debt markets across platforms
  • The meeting place for industry professionals
  • The platform for establishing best practices, industry standards & federal policy
  • Comprised of approximately 400 companies and 19,000 individual members
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News

CREFC's July 2024 Monthly CMBS Loan Performance Report

August 21, 2024

CRE Finance Council has released a report on CMBS loan performance for July.*

Key takeaways:

DELINQUENCY RATE CLIMBS AGAIN

 

  • Conduit/SASB CMBS combined delinquency of 5.43%
    • Delinquency rate increased 8 bps in July, following a surge of 38 bps in June
    • Delinquency rate has increased five of the last seven months; on a YOY basis, the overall combined delinquency rate is up 102 bps (5.43% vs. 4.41% in July 2023)
  • Office accounted for two-thirds of newly delinquent loans
    • ~$1.9 billion in office loans became newly delinquent in July
    • Office delinquency rate is now above 8% for the first time since November 2013 when the rate was at 8.58%
    • Convergence of work-from-home (WFH)-induced demand shock, high benchmark, mortgage, and cap rates, and a pullback in bank lending will continue to present office financing headwinds
  • June delinquency rate is still 489 bps below 10.32% peak in June 2020 – the height of pandemic-related lockdowns
  • Loans in special servicing (SS) rose 7 bps to 8.30% in July, up 168 bps YOY; despite the modest increase on the month, the SS rate remains elevated
    • SS rate is at a three-year high and has increased in every month of 2024. it is now 152 bps higher than the 6.78% mark at year-end 2023.
  • In a report dated 8/2/24, BofA Global Research examined YTD pay-off trends for conduit loans
    • In one analysis, pay-off rates were calculated by property type and loan size; successful pay-off rates decreased as loan size increased, with office loans facing the greatest challenges
    • BofA notes that the lower pay-off rates for larger loans may reflect “sponsors of larger loans believing that they have leverage over special servicers”


*Source: Trepp. CMBS data in this report reflect a total outstanding balance of $609.5B: 57.8% ($352.3B) conduit CMBS, 42.2% ($257.2B) single-asset/single-borrower (SASB) CMBS.

Click here to download the full report. Contact Raj Aidasani for more information on CMBS loan performance.


Contact  

Raj Aidasani
Managing Director, Research
646.884.7566

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2024 CRE Finance Council. All rights reserved.
CREFC's July 2024 Monthly CMBS Loan Performance Report
August 21, 2024
CRE Finance Council has released a report on CMBS loan performance for July.

News

CREFC Announces 2024 Capital Markets Conference

August 14, 2024

NEW YORK, Aug. 14, 2024 –
The CRE Finance Council (CREFC), the trade association that exclusively represents the nearly $6 trillion commercial and multifamily real estate finance industry, is pleased to announce its September 18, 2024, Capital Markets Conference in New York City.

This one-day event features a series of panels examining a wide range of issues top of mind for commercial real estate (CRE) finance market participants who have managed a protracted period of elevated interest rates, a rapidly evolving regulatory environment, and an array of unique challenges that impact income-producing properties.

The Conference features seasoned market professionals who will detail how the industry is managing a sizable wall of CRE debt maturities. Today’s challenges are particularly acute given a still elevated rate environment and uncertainty surrounding CRE property valuations. Panelists will focus on key servicing issues in today’s challenging markets, such as refinancing commercial mortgages at today’s substantially higher mortgage rates relative to the original loan. Other key topics include borrowers’ search for alternative sources of liquidity. Attendees will learn about the health of the securitized market, the role of debt funds, and how changes in regulations, notably Basel III, impact bank lending, and general market liquidity.

Featured panels include:

  • Wall of Maturities – Fact or Fiction
  • State of the Market: Servicer Perspective
  • Bank Balancing Act: Challenges and Opportunities for Lending
  • Out of the Shadows? Nonbank Lending in Today’s Economy
  • New Issue Roundtable: State of the Securitized Market 


When:
September 18, 2024

Where:

Conrad New York Downtown

102 North End Ave

New York, NY, 10282


Program

Registration
Live stream options are available.

"Commercial real estate finance market participants have endured a barrage of unprecedented challenges that include high borrowing costs, escalating expenses for property owners, and dramatic changes in how tenants work in commercial properties,” said Lisa Pendergast, Executive Director, CREFC.

"This year’s comprehensive program considers the CRE finance market’s risks and opportunities at a time when participants face a wave of debt maturities, and sources of liquidity are shifting with the emergence of new capital sources amid an evolving regulatory environment.”

To learn more about CREFC's upcoming conferences and events, please visit here.

Contact:

Aleksandrs Rozens

arozens@crefc.org

646-884-7567

Contact 

Aleksandrs Rozens
Senior Director, Communications

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2024 CRE Finance Council. All rights reserved.
CREFC Announces 2024 Capital Markets Conference
August 14, 2024
CRE Finance Council (CREFC) is pleased to announce its September 18, 2024, Capital Markets Conference in New York City.

News

Political Update: Harris Consolidates Support

July 30, 2024

Vice President Kamala Harris has upended the presidential race in the last nine days after President Joe Biden announced his decision to bow out of the race.

Why it matters: Harris cleared the field of contenders for the nomination within 48 hours after President Biden announced he would not seek re-election. Delegates who voted for President Biden in the primaries are under no obligation to vote for her, and won’t officially do so until a virtual roll call in mid-August.

  • However, the vice president has consolidated nearly every Democrat in the party and stopped any would-be challengers in their tracks almost immediately.

Harris’s robust support in just over a week comes from leading Democrat lawmakers, President Biden, and former President Barack Obama:

  • 200 representatives, 23 governors, and 45 senators have endorsed Harris. Of note, Senator Jon Tester (D-MT), Senator Joe Manchin (I-WV) (who caucuses with the Democrats), and Senator Bob Menendez (D-NJ) are the only Senate Democrats to have not yet endorsed Harris as of this writing. Vice President Harris was also endorsed on July 22 by all 50 state Democratic party chairs.
  • Former President Barack Obama, and Former First Lady Michelle Obama endorsed Harris on July 26.
  • According to the Associated Press’ Democratic delegate survey, Harris unofficially surpassed the 1,976 delegates needed to secure the nomination on July 22, the day after Biden dropped out, with commitments from 2,668 delegates.
  • Note that Harris will not officially become the nominee until the delegates vote. The DNC has signaled that virtual voting will begin by Aug. 1 and should be wrapped up no later than Aug. 7.
  • This ensures that the entire nomination process will be settled prior to the start of the Democratic National Convention in Chicago on Monday, Aug. 19.

What they’re saying: The next big decision Harris has to make is to select a vice president. While many names have been floated in D.C. circles, the top contenders include:

  • Sen. Mark Kelly (D-AZ),
  • Gov. Josh Shapiro (D-PA),
  • Gov. Tim Walz (D-MN), and
  • Gov. Andy Beshear (D-KY).

North Carolina Governor Roy Cooper (D) announced on Monday that he was bowing out of VP consideration.

What’s Next: Harris’s choice of vice president will likely be revealed soon. DNC bylaws state that the Democratic nominee needs to make his or her decision known by Wednesday, Aug. 7.

Please contact James Montfort (Jmontfort@crefc.org) with any questions.

Contact 

James Montford
Manager, Government Relations
202.448.0857
jmontfort@crefc.org 

Illustration of the bat signal with the Presidential sea
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2024 CRE Finance Council. All rights reserved.
Political Update: Harris Consolidates Support
July 30, 2024
Vice President Kamala Harris has upended the presidential race in the last nine days after President Joe Biden announced his decision to bow out of the race.

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