Distress in debt markets for multifamily and commercial real estate is unfolding at a much faster pace, given the dynamics of the COVID-19 crisis. Still, distress appears to be following a specific pattern for particular property types. The CMBS market offers the most transparent, generally accessible picture, of how the status of loans supported by different CRE sectors is changing. In this session, we discussed the mechanics of distress in the CRE debt markets, and offer insights into what's next as economic reopening efforts ensue.

Moody's hosted a CRE update webinar to discuss the impact of COVID-19 on Multifamily.

Economic downturns cause delays and cancellations for new construction in multifamily and commercial real estate, as uncertainty about the timing and magnitude of future cash flows prompts market players to reassess priorities. The COVID-19 crisis adds several layers of complexity as shelter-in-place policies are disrupting supply chains and (in some places) halting construction activity altogether. In this webinar, we discussed how we track disruptions to construction, and how we update our supply growth forecasts dynamically - affecting our outlook for performance metrics like rents and vacancies.

Panelists discussed what recovery would look like across different CRE sectors such as employment, hotels, retail, and office. What factors are important? How long will it take? What changes are here to stay?