Losses taken by lenders on previously defaulted CRE loans remain below rates seen in the Great Financial Crisis, according to an analysis by Real Capital Analytics

“It is possible we have not seen the worst of the losses as economic uncertainty tied to the pandemic and the crisis in Ukraine still looms,” writes RCA’s Alexis Maltin in the recent analysis in the firm’s US Capital Trends report. “So far, however, the availability of debt and pent-up investor demand have helped buoy prices. This price growth has offered lenders some downside protection in the event of a default.”

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