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Commercial real estate

Market participants are facing increasing uncertainty, surfacing a complex set of interconnected risks associated with rising rates, market disruptions, and changes in the supply-demand dynamics of real estate.

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.

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Key capabilities

ANTICIPATE, ADAPT AND THRIVE. 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.

01 Ratings

Moody's Ratings

Ratings

Moody’s Ratings 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 Credit), SFRs (Single Family Rentals) and Government Sponsored Entities.  In addition, we also rate Banks and Life Insurance companies with exposure to CRE.

Read about CRE CLOs
Read about banking
Read about life insurance
02 Research

Moody's

Research

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.

03 Data

Moody's

Data

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.

04 Tailored solutions

Moody's

Tailored solutions

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.

Learn more about our solutions for CRE
Learn more about our lending suite for CRE
Learn more about managing your CRE portfolio
05 Financial risk analytics

Moody's

Financial risk analytics

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.

Learn about our commercial mortgage metrics solution

Moody's Ratings

Ratings

Moody’s Ratings 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 Credit), SFRs (Single Family Rentals) and Government Sponsored Entities.  In addition, we also rate Banks and Life Insurance companies with exposure to CRE.

Read about CRE CLOs
Read about banking
Read about life insurance

Moody's

Research

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.

Moody's

Data

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.

Moody's

Tailored solutions

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.

Learn more about our solutions for CRE
Learn more about our lending suite for CRE
Learn more about managing your CRE portfolio

Moody's

Financial risk analytics

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.

Learn about our commercial mortgage metrics solution

More insights

research

Jun 12, 2024

 Moody's Ratings
Lingering risk from property investments weighs on Chinese insurers’ profitability

The prolonged property slump in China is raising asset risks for insurers in the country because they have significant investments in the sector in various ways.  

  • China
  • Insurance
Read
research

Jun 12, 2024

 Moody's Ratings
Singapore banks have pockets of risk in Greater China, US property loans

Singapore banks have very large exposures to the property sector. While this is a mostly stable portfolio, pockets of risk remain in the Greater China and US markets.

  • Singapore
Read
research

Jun 11, 2024

 Moody's Ratings
Asset risks from commercial real estate loans grow for some Asia-Pacific banks

CRE exposures account for about 12% of total loans at Asia-Pacific banks, with those in Hong Kong SAR, China; mainland China; and Vietnam facing greater risks.

  • APAC
  • Banking
  • Infographic
Read
research

Jun 05, 2024

 Moody's Ratings
Provision spike drives losses for most US non-bank commercial real estate lenders in first quarter

Problem loans tied to office and multifamily grew, leading to higher provisions and net losses for lenders. Capital remains a credit strength, but funding and liquidity weakened.

  • United States
  • Multifamily
Read
research

Jun 07, 2024

 Moody's Ratings
Subordinate debt raises CMBS default risk, will soon weigh on conduit resolutions US CMBS

For mortgage loans in CMBS, subdebt can reduce the amount of securitized leverage, a credit positive, but also increases the amount of leverage to be serviced by a borrower, a credit negative. 

  • United States
  • CMBS
Read
article

Jun 05, 2024

 Moody's
The Pros and Cons of a Strong Economy for CRE

In CRE, good and bad news come hand-in-hand. What’s bad for the retail sector might be good for warehouse performance; trends that put major metros at a disadvantage may be supporting success in suburbs or smaller cities.  

Read

Moody's CRE by the numbers

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