KBRA Credit Profile Releases CREFC High Yield, Distressed Assets, & Servicing Conference 2026 Recap

NEW YORK--(BUSINESS WIRE)--KBRA Credit Profile (KCP) attended the CRE Finance Council’s (CREFC) annual High Yield, Distressed Assets, & Servicing Conference, held in New York City on March 10. The event attracted more than 300 commercial real estate (CRE) professionals and featured five panels along with a one-on-one discussion.

Key Takeaways

• Private credit continues to expand in CRE, helping to fill refinancing gaps as banks remain selective, with roughly $3 trillion of CRE loans maturing over the next several years.
• Credit markets remain constructive, although more cautious entering 2026, as macro volatility and geopolitical uncertainty reinforce the need for disciplined underwriting.
• The recovery of New York City office remains bifurcated, with trophy assets attracting tenants and capital while older properties face vacancy and refinancing challenges.
• Office-to-residential conversions—amid limited new supply—are gradually reducing inventory, improving fundamentals for the highest-quality office buildings.
• The New York City multifamily sector continues to face operational and regulatory complexity, although the city’s structural housing shortage supports long-term demand.
• Stress in the hospitality sector is rising, particularly among mid-tier hotels, as higher borrowing costs, labor expenses, and renovation requirements weigh on refinancing prospects.
• Servicing and underwriting are becoming more complex, particularly for specialized assets such as data centers and life science facilities, which require deeper operational analysis.
• Distress is creating redevelopment opportunities, with lower acquisition prices enabling selective office-to-residential conversions and successful repositioning strategies.

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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