Commercial real estate, or CRE, has traditionally generated stable revenue, but current shifts in consumer and business behaviors, housing affordability and supply, rising interest rates, stalling transaction volume as valuations correct, limited debt liquidity, upcoming loan maturities and secular changes in office utilization are beginning to affect CRE performance and cause new pockets of risk to develop.
Over a three-to-five year horizon, returns will depend on how lenders and investors manage their CRE portfolios, carefully monitoring both secular and cyclical trends and how they manifest as risk. Because CRE is such a heterogenous asset class going through complicated changes, it is important to have a robust, organized, and consistent way to keep tabs on all the credit-driving intricacies of a large portfolio.
Volatility in the real estate market is driving an increased need for a formalized approach to reporting on CRE portfolio performance and collateral. The CRE 360 Portfolio Monitor couples your proprietary portfolio data together with our best-in-class data, models, market, and forecasting capabilities so you can evaluate portfolio performance, identify riskier assets and make decisions with confidence.
Concentrations of high potential loss
Exposures of the riskiest submarkets
Interest rate sensitivities
Repeatable, efficient regulatory reporting
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Whether you need to make decisions on your portfolio today, or are looking for in-depth analysis and opinion on the state of CRE across the globe, Moody's gives you a multifaceted view of risk, bringing together quality data, institutional-grade analytical solutions and industry-leading risk modelling when, where and how you need them.
Moody’s Investors Service delivers independent, in-depth and transparent opinions on credit risk through its credit ratings. Get public and private credit ratings on Commercial Real Estate Lenders, Equity REITs, CMBS Conduit and SASB (Single Asset Single Borrower) transactions, CRE Collateralized Loan Obligations, LIHTC (Low Income Housing Tax), SFRs (Single Family Rentals) and Government Sponsored Entities. In addition, we also rate Banks and Life Insurance companies with exposure to CRE.
Draw on Moody’s expert analysis and opinion to deepen your understanding of the CRE market. Gain transparency and award-winning insights from Moody’s to develop perspectives on sector trends and assess creditworthiness across the CRE market. Leverage timely, opinion-rich and forward-looking commentaries to monitor the varied risks and inform your credit decisions.
Change the way you analyze data, understand shifting market dynamics, and mitigate risk. Leverage over 40 years of historical data and continuous data coverage and partnership expansion, to gain meaningful depth and breadth of data granularity, unique intelligence, and analytics to bridge the information gap, and deliver the transparency necessary to inform strategy, assess risk and execute deals.
Our integrated suite of solutions allows you to build credibility and make confident investment decisions quantifying and balancing risks, evaluate deals more efficiently, forecasting volatility, and better understand performance. Our industry leading tools support every stage of the CRE lifecycle: lending, underwriting, data ingestion, hold/sell analysis, stress testing, portfolio management, and ongoing portfolio monitoring and benchmarking.
Unlock insights designed to navigate the evolving CRE landscape to evaluate deals faster and prioritize the right opportunities. Whether evaluating CMBS, CLO, or commercial mortgage risks, our robust financial analytics are Informed by trusted data, so can evaluate deal cash flows, assess default and recovery, make equity and debt decisions, and more.
Global CMBS/CRE CLO
rated debt outstanding
Equity REITs rated
CRE exposure for rated insurance cos
historical CRE data
of commercial properties
customers using our CRE solutions
Is your loan portfolio prepared for what’s to come? Moody’s Analytics CRE has designed the CRE 360 Report to provide custom reporting for client
Higher rates now and potential changes in employment later portend negative credit pressures on US CRE. Office, representing nearly 20% of all CRE debt, faces the most risk, as hybrid work persists.
Experts share findings from Q1 2023, including current risk factors, sector specific trends, CRE capital markets, and more.
Ed DeForest and Lori Marks of the Corporates team talk about Moody’s big-picture industry outlooks as the macroeconomic winds shift, and zero in on the real-estate sector’s problems.
Our experts break down what’s really happening with CRE and banks in two parts: CRE exposure to banks, and banks’ exposure to CRE.
Higher interest rates and lower valuations are making refinancing tougher. Risks vary across property types and markets. Exposures and risks for commercial real estate lenders also differ.
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