Commercial Real Estate: How Real is a CRE Crisis? Should Insurers Expect Shockwaves to their CMBS Portfolio?

The potential for a commercial real estate crisis has risen in recent years because of the combined effects of higher interest rates and changes in market dynamics post-pandemic. Higher inflation and elevated interest rates have put pressure on net operating incomes and negatively impacted valuations. This has shifted consumer behavior toward online shopping, and the rise of remote work has led to rising delinquency rates in both the retail and office sectors. While the peak of negative sentiment in the commercial mortgage-backed securities market appears to have subsided, there are lingering issues that have yet to be resolved. During this session, Chad Zahner from NEAM will help attendees understand if further deterioration is expected to trigger a CRE crisis as well as what impacts investors can expect to their CMBS portfolios.