NEW YORK–(BUSINESS WIRE)–#creditratingagency–KBRA Credit Profile (KCP) attended the CRE Finance Council’s (CREFC) annual High Yield, Distressed Assets, & Servicing Conference, held in New York City on March 10. The event attracted more than 300 commercial real estate (CRE) professionals and featured five panels along with a one-on-one discussion.
Key Takeaways
- Private credit continues to expand in CRE, helping to fill refinancing gaps as banks remain selective, with roughly $3 trillion of CRE loans maturing over the next several years.
- Credit markets remain constructive, although more cautious entering 2026, as macro volatility and geopolitical uncertainty reinforce the need for disciplined underwriting.
- The recovery of New York City office remains bifurcated, with trophy assets attracting tenants and capital while older properties face vacancy and refinancing challenges.
- Office-to-residential conversions—amid limited new supply—are gradually reducing inventory, improving fundamentals for the highest-quality office buildings.
- The New York City multifamily sector continues to face operational and regulatory complexity, although the city’s structural housing shortage supports long-term demand.
- Stress in the hospitality sector is rising, particularly among mid-tier hotels, as higher borrowing costs, labor expenses, and renovation requirements weigh on refinancing prospects.
- Servicing and underwriting are becoming more complex, particularly for specialized assets such as data centers and life science facilities, which require deeper operational analysis.
- Distress is creating redevelopment opportunities, with lower acquisition prices enabling selective office-to-residential conversions and successful repositioning strategies.
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About KBRA
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Contacts
Cameron Casey, Senior Analyst, KCP
+1 215-882-5885
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Michael Anderson, Senior Analyst, KCP
+1 215-882-5448
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Benjamin Silverstein, Associate, KCP
+1 215-882-5485
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Mike Brotschol, Managing Director, KCP
+1 215-882-5853
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Steve Kuritz, Senior Managing Director, KBRA Analytics
+1 215-882-5866
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Media Contact
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