CRE Has Proven Resilient, But Risks May Emerge: U.S. Office Of Financial Research

Today, the U.S. Office of Financial Research published a brief, "U.S. Commercial Real Estate Has Proven Resilient, but Emerging Risks Could Generate Losses for Lenders," and an accompanying blog, regarding the performance of the U.S. commercial real estate (CRE) sector during economic downturns.

Despite the 2020 economic downturn and uptick in remote work, the U.S. CRE market held strong, particularly compared to its performance in previous recessions. However, relatively small changes in economic and financial conditions could have a detrimental impact on CRE loan performance. The brief explores the conditions and policy decisions that supported CRE after the 2020 recession and analyses the emerging risks that could pressure its performance.

The blog can be found here.

The brief can be found here.

The OFR home page is: https://www.financialresearch.gov/.