KBRA Credit Profile (KCP), a division of KBRA Analytics, releases its Day 1 recap of the CRE Finance Council (CREFC) June Conference 2026 held in New York City. Audiences listened as industry leaders discussed the challenges and opportunities facing commercial real estate (CRE) within the current macroeconomic environment.

Key Takeaways

• Office remains the primary driver of rising commercial mortgage-backed securities (CMBS) delinquency rates, with refinancing challenges and maturity stress continuing to weigh on the sector.
• A/B note splits have reemerged as an important workout tool, although resolution strategies remain highly deal-specific and must account for collateral type, transaction structure, borrower capital support, and timing constraints.
• Today’s higher-cost capital environment requires a more targeted investment approach, with borrowers and investors prioritizing asset quality, location, income growth, and execution certainty.
• Data centers and digital infrastructure remain a dominant investment theme, but underwriting risks are receiving greater scrutiny.
• Private credit has become a permanent source of CRE capital and continues to grow in importance, despite negative headlines around the broader private credit market.
• CMBS issuance remains resilient despite macro uncertainty, with single-asset single borrower (SASB) and CRE collateralized loan obligation (CLO) transactions leading market activity.
• Geopolitical tensions and trade policy uncertainty are creating additional CRE headwinds, with tariffs, energy costs, and capital flow volatility increasing construction costs and execution risk.

Click here to view the report.

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

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