U.S. Commercial Real Estate Has Proven Resilient, but Emerging Risks Could Generate Losses for Lenders

U.S. Commercial Real Estate Has Proven Resilient, but Emerging Risks Could Generate Losses for Lenders

Despite the 2020 economic downturn and uptick in remote work, the U.S. commercial real estate market held strong, particularly compared to its performance in previous recessions. Relatively small changes in economic and financial conditions, however, could have a detrimental impact on CRE loan performance. In a brief published today, the OFR explored the conditions and policy decisions that supported CRE after the 2020 recession and analyzed the emerging risks that could pressure its performance. (Brief no. 22-02)