After a year of falling transaction volumes and valuations, higher interest rates with no certainty of reductions, and difficulty in getting refinancing, there have been concerns about the state of CRE credit markets.

Goldman Sachs looked at some trends from the last few quarters of activity and analyzed the results.

Overall, it found that debt capital remains available for borrowers that can withstand more restrictive and costlier financing options. Refinancing needs have also been partially addressed via loan modifications – a trend Goldman Sachs thinks will persist. From a credit performance standpoint, the share of loans behind on their debt service payments or being worked out by lenders has increased, it also noted, but added that this increase is yet to translate into higher losses on loan portfolios, keeping systemic concerns in check.