Latest news with #CRE
Mint
a day ago
- Business
- Mint
Commercial Real Estate Distress Is Spreading: Credit Weekly
(Bloomberg) -- The pain in US commercial real estate credit continues to bubble to the surface after a surge in borrowing costs and the rise of work from home left lenders vulnerable to losses. Delinquencies continue to increase, though the rate has moderated, researcher Green Street said this past week. Distress is also climbing, rising 23% to more than $116 billion at the end of March from a year earlier, data compiled by MSCI Real Capital Analytics show. That's the highest in more than a decade. Investors including Victor Khosla of Strategic Value Partners LLC have warned that debt maturities will lead to a 'tsunami' of problems for US offices in particular. There are signs that's spreading. The past-due and nonaccrual rate for commercial real estate portfolios reached the highest since 2014 earlier this year, the Federal Deposit Insurance Corp. wrote in a report last month, citing multifamily as an increasing source of pain. Past-due and nonaccrual loans are so far past due that banks have stopped booking interest owed because they doubt they'll ever receive it. Policy uncertainty, meanwhile, is also holding back activity in the underlying market as businesses delay decisions across districts, the Federal Reserve noted in its May Beige Book survey. For example, some of the reserve banks stated that demand for warehouses was affected by the potential impact of tariffs. Click here to listen to a podcast on the dangers facing private debt funds when the cycle turns The proposed Section 899 'revenge tax' in President Donald Trump's tax-and-spending bill could also 'trigger wider foreign investor pullbacks, impacting all US real estate lenders,' said Harsh Hemnani, a senior analyst at Green Street. German commercial property lender Deutsche Pfandbriefbank AG announced this past week that it's quitting the US market and will wind down, securitize or sell its €4.1 billion ($4.7 billion) portfolio there, warning it could make a loss this year due to the expected cost of the decision. Still, 'the timing of the exit likely indicates a belief that current market conditions offer a favorable window for divestment' amid improved liquidity and competition in the debt market, Hemnani said. That's in part because direct lenders have been raising more capital to invest in CRE, a trend that's causing some wariness. On Thursday, the Financial Stability Board cautioned that shadow lending to the industry globally 'may amplify and transmit shocks to banks.' Some traditional lenders continue to kick the can down the road in the US rather than take impairments. The wall of CRE debt continues to rise, in part because some credit providers have extended the duration of loans, the Mortgage Bankers Association said on Tuesday. Another headwind for traditional lenders is large unrealized losses on securities portfolios that they're holding to maturity or seeking to offload, with the FDIC saying last month that the losses stand at more than $410 billion. CRE is likely to be a similar source of pain. Loss rates on commercial and residential mortgage-backed securities suggest the unrealized losses on banks' mortgage books are likely to be as large or larger than in securities, academics including Lawrence White of New York University's Stern School of Business wrote last week. --With assistance from John Gittelsohn and Patrick Clark. More stories like this are available on
Business Wire
4 days ago
- Business
- Business Wire
Cushman & Wakefield and CoreNet Global Release New Survey Results on 'What Occupiers Want'
CHICAGO--(BUSINESS WIRE)--Cushman & Wakefield (NYSE: CWK), in partnership with CoreNet Global, the global professional association for corporate real estate, has released new survey results revealing how corporate real estate (CRE) priorities are evolving in response to cost pressures, shifting organizational models, a stabilizing office footprint, and the growing demand for workplace flexibility and service. Findings from the What Occupiers Want 2025 survey—reflecting the views of CRE decision-makers across the Americas (52%), EMEA (34%) and APAC (14%)—highlight an industry at a strategic crossroads, as companies balance traditional cost control measures with new imperatives around talent, culture, and portfolio agility. The views represent approximately 8.1 million employees globally and approximately 340M square feet of floor area. 'The survey shows that while cost discipline remains essential, organizations are increasingly recognizing that real estate decisions directly impact employee experience, engagement, and overall business performance,' said Despina Katsikakis, Global Lead, Total Workplace Consulting at Cushman & Wakefield. 'This marks a critical opportunity for CRE leaders to shape strategies that deliver both financial and workforce value.' Cost Still Reigns, but Uncertainty Dominates Decision-Making Cost control remains the top driver of corporate real estate decisions globally, as CRE leaders face continued pressure to reduce or optimize spending. Financial KPIs—particularly cost, efficiency, and space utilization—still dominate strategy. However, uncertainty looms large. Political instability, changing workplace behaviors, and unclear ROI metrics have left many organizations hesitant to act boldly. Additionally, environmental, social, and governance (ESG) priorities—once on the rise—have slipped back to pre-2021 levels in global importance, though they remain a top concern for occupiers in the EMEA and APAC regions. CRE Organizational Models Are Evolving—And Metrics Must Keep Pace One of the report's most striking findings: nearly one-third (29%) of companies that recently changed their CRE reporting structure now have real estate teams reporting to Human Resources. 'This shift highlights a growing understanding that corporate real estate is about people, culture, and experience—not just space and cost,' said David Smith, Head of Americas Insights. 'But to make this evolution meaningful, organizations need new performance metrics that link workplace investments to employee experience, engagement, and productivity—not just financial outcomes.' Despite these organizational changes, most companies continue to rely heavily on traditional financial measures. The report calls for a balanced scorecard approach that bridges the gap between cost control and workforce impact. Downsizing Has Peaked as Occupiers Stabilize Portfolios After several years of footprint reduction, the era of mass downsizing appears to be over. Only 32% of companies plan further space cuts, while 1 in 8 occupiers plan to expand their footprint. Meanwhile, average office lease sizes have grown by 13% since 2023. Office utilization rates are stabilizing as well, with global occupancy levels settling between 51% and 60%—still below pre-pandemic norms but rising steadily as more firms implement structured return-to-office policies. Landlords Must Step Up as the Office Becomes a Service Tenants are demanding more from their landlords—85% of occupiers now expect landlords to provide enhanced amenities, services, and workplace experiences, and nearly half (46%) are willing to pay a premium for these upgrades. Top-tier office space commands a nearly double-digit rental premium as a result. Yet there remains a gap between expectation and delivery: only 60% of employees believe their current workplace fully supports collaboration, relationships, and culture-building—the very elements that draw people back to the office. Flexible Location Strategies Are the New Talent Imperative Flexible hiring practices are now standard, with 61% of companies adapting their real estate strategies to access diverse talent pools across multiple geographies. Regional trends show varied approaches: In the Americas, hybrid and country-level hiring dominate. EMEA firms favor selective global hiring where a presence already exists. APAC leads in expanding remote hiring options. Technology talent remains in high demand, particularly in APAC, where growth outpaces that of the Americas and EMEA. The 2025 What Occupiers Want survey reveals a CRE industry in transition: while cost pressures remain paramount, leading organizations are redefining value beyond financial savings. 'To drive meaningful impact, CRE leaders must champion new, integrated performance frameworks that reflect the true business value of the workplace,' said Katsikakis. 'Real estate decisions are no longer just about the bottom line—they're about workforce performance, culture, and competitive advantage.' About Cushman & Wakefield Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit CoreNet Global is a non-profit association, headquartered in Atlanta, Georgia (US), representing more than 11,000 executives in 50 countries with strategic responsibility for the real estate assets of large corporations. The organization's mission is to advance the practice of corporate real estate through professional development opportunities, publications, research, conferences, designations and networking in 46 local chapters and networking groups globally. For more information, please visit
Business Wire
12-06-2025
- Business
- Business Wire
KBRA Credit Profile Releases CREFC June Conference 2025: Day 3 Recap
NEW YORK--(BUSINESS WIRE)--KBRA Credit Profile (KCP), a division of KBRA Analytics, releases its Day 3 recap of the Commercial Real Estate Finance Council (CREFC) June Conference 2025. Key Takeaways Labor cost inflation remains a major development obstacle, particularly as stricter immigration enforcement contributes to staffing shortages and project delays. Rising operating expenses are prompting CRE owners to defer nonessential capital improvements, especially in multifamily, to protect cash flow. Tariffs remain a wildcard for CRE, with panelists expressing mixed views on their potential impact and stressing the importance of trade policy stability for market confidence. Although new hotel development can cost up to 40% more than acquiring existing assets, newer properties often outperform due to sponsor experience and market expertise. Upscale and luxury hotels are outperforming limited-service segments, supported by affluent consumer demand and fewer deferred maintenance issues. Office lending is showing signs of life, led by commercial mortgage-backed securities (CMBS), with office potentially growing to 25% of conduit issuance. Recapitalizations remain a key theme for aging office stock, with family offices and sovereign wealth funds stepping in as private equity holds back. Click here to view the report. Recent Publications About KBRA KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions. Doc ID: 1009905
Malaysian Reserve
11-06-2025
- Business
- Malaysian Reserve
Malaysia emerges as strategic hub for resilient workspaces in South-East Asia
MALAYSIA is increasingly recognised as a key beneficiary of the global real estate transformation, as multinational corporations seek to align their real estate portfolios with operational resilience, sustainability and future-ready workspaces. As corporations globally confront economic volatility, geopolitical risk and the need to rapidly adapt to digital transformation, some 50% of global occupiers expect their footprint to grow in the next 3-5 years, representing over 104 million sq ft of new space. Malaysia, with its maturing infrastructure, trilingual talent pool and expanding industrial corridors, is firmly on the radar, according to a new global report released by Knight Frank (M) Sdn Bhd capturing responses from nearly 300 corporate real estate (CRE) leaders managing over 650 million sq ft of space worldwide. 'Occupiers are cutting loose from legacy portfolios, but they're not abandoning space. 'They're moving to better space and into more locations as they regionalise their portfolios,' Knight Frank partner and global occupier research head Dr Lee Elliott said in a statement. Locally, the statement noted that Knight Frank has seen increasing interest from multinationals looking to establish regional headquarters, high-spec industrial hubs and sustainable logistics solutions in Greater Kuala Lumpur, Johor and Penang. It said the demand is particularly strong among firms focused on advanced manufacturing, technology and regional distribution. Knight Frank group MD Keith Ooi said Malaysia offers the right mix of cost efficiency, political stability and market access that global occupiers are looking for today. 'But what truly sets us apart now is the growing quality of our industrial and office spaces — they're being designed with resilience, environmental, social, and governance (ESG)-readiness and long-term adaptability in mind,' he said in the same statement. Knight Frank's research shows that the top priority for CRE leaders today is enhancing operational efficiency and resilience — cited by 38% of respondents — ranking above ESG compliance or innovation. This reflects a flight to functionality, where occupiers prefer shorter lease terms, hybrid-ready layouts and location strategies built around risk diversification and talent access. — TMR This article first appeared in The Malaysian Reserve weekly print edition
Yahoo
10-06-2025
- Business
- Yahoo
Trepp & CRE Direct Releases "The Mid-Year Magazine 2025" as Multifamily Fundamentals Hold Firm Amid Rising Distress
Trepp and Commercial Real Estate Direct have released The Mid-Year 2025, highlighting strong fundamentals in the multifamily sector despite signs of growing distress across other commercial real estate sectors. NEW YORK, June 10, 2025 /PRNewswire-PRWeb/ -- Trepp, the leading provider of data, insights, and technology solutions to the structured finance, commercial real estate (CRE), and banking markets and Commercial Real Estate Direct, a publication delivering in-depth reporting for CRE professionals, release The Mid-Year 2025, highlighting strong fundamentals in the multifamily sector despite signs of growing stress. Access The Mid-Year 2025 Magazine here: The industry started the year brimming with optimism over their expectations that the country would be entering an era of deregulation, but that changed quickly with the uncertainty surrounding the impact of tariffs. By early April, bond yields widened and deal flow, particularly in the CMBS market, came to a virtual halt. The multifamily sector has faced mounting pressure, with $4.38 billion, or 7.07% of all CMBS multifamily loans, now more than 30 days delinquent. This is a nearly 60% increase since the end of 2024. Yet, still, the office sector remains the most challenged, with $16.28 billion in delinquent loans. On a slightly more encouraging note, that figure is lower than year-end levels, indicating that special servicers are actively resolving legacy issues. "Multifamily risk is concentrated in a small number of very large properties," said Orest Mandzy, Managing Editor of CRE Direct. "What's more, the sector is on relatively firm footing, fundamentally, unless, that is, you have to contend with onerous rent rules." The Mid-Year further explores key insights for CRE professionals navigating 2025. Access the magazine here: For more information about The Mid-Year or any of the data and analyses, email press@ or visit Follow @TreppWire and @crenewstweets on X (formerly Twitter) for the latest updates on CRE and CMBS markets. About Trepp: Trepp, founded in 1979, is the leading provider of data, insights, and technology solutions to the structured finance, commercial real estate, and banking markets. Trepp provides primary and secondary market participants with the solutions and analytics they need to increase operational efficiencies, information transparency, and investment performance. From its offices in New York, Dallas, and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance, and portfolio management. Trepp subsidiary, Commercial Real Estate Direct, is a daily news source covering the commercial real estate capital markets. Trepp is wholly owned by Daily Mail and General Trust (DMGT). About Commercial Real Estate Direct: Commercial Real Estate Direct, founded in 1999 and a subsidiary of Trepp, is a daily news source covering the commercial real estate capital markets. Each day, its seasoned staff of editors and real estate journalists delivers up-to-date market intelligence on the mortgage business, equity raising, investment sales, and CMBS. CRE Direct also provides its readers with actionable data through its Property Sales Database, which details more than 25,500 large property transactions, CMBS Pricing Matrix, the industry's only weekly pricing survey, and the CMBS Pipeline, a calendar of upcoming transactions with historical pricing information. Media Contact Ennys Soydas, Trepp, Inc., 212-754-1010, press@ Twitter View original content to download multimedia: SOURCE Trepp, Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
