Commercial real estate lenders may have much greater risk exposure than publicly recognized in the event of a recession, according to a Fortune article, citing real estate data firm CrediFi.
The study deems lenders’ exposure to the retail and industrial property sectors as particularly risky in the event of an economic downturn, as well as declining commercial mortgage–backed securities (CMBS) originations that leave more risk on lenders’ balance sheets.
CrediFi tracked more than $925 billion of commercial real estate loan originations in 2018.
