KBRA Credit Profile (KCP), a division of KBRA Analytics, releases its Day 2 recap of the Commercial Real Estate Finance Council (CREFC) June Conference 2025.
Key Takeaways
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Capital markets remain resilient despite a slowdown in originations, with a continued shift to five-year and bridge-to-bridge structures.
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Servicers flagged growing loan complexity and increased fraud risk as areas of concern, prompting the need for stronger compliance protocols and the adoption of technology-driven tools.
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B-pieces tied to 10-year loans can be acquired at a discount; however, these are viewed as difficult to underwrite and rate stability was cited as a critical factor for restoring deal flow and borrower confidence.
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Insurance companies are shifting from core lending to value-add-strategies, often through asset manager partnerships, driving broad CRE debt competition.
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Tighter bank regulation and a looming wave of $2.1 trillion in CRE loan maturities has highlighted the need for alternative lenders to fill gaps in the CRE lending market.
Click here to view the report.
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