Key takeaways
Financial institutions face a number of hurdles in today’s commercial real estate (CRE) market, like high vacancies, valuation dips, and loan delinquency. The good news? Lenders can refresh their strategy with alternative data and tactics to jump over these hurdles.
High vacancies, plummeting valuations, and refinancing cliffs threaten to sour even the most robust lending portfolios. Market risks have slowed down essential decision-making, as developers and lenders alike struggle to address a changing market with outdated policies, processes, and strategies.1
Lenders have leaned on the same borrower assessments, loan structures, and data sources for years, if not decades. A new approach requires a systematic shift that infuses new data and tactics that might be different from traditionally relied-upon sources.
Deloitte’s real estate finance leaders are helping lenders overcome today’s CRE crunch with risk management transformation and alternative data strategies.
We’ll look closely at Canadian CRE trends, and ways that Deloitte empowers lenders to thrive with new data, policies, and strategies.
The Canadian CRE market has a 1.84% CAGR predicted from 2025 to 2029.2 This is slightly behind our US neighbours, but higher than many of our European counterparts.
But growth won’t come easily, as lenders grapple with troublesome trends, like:
Lenders can find relief from these pressures with two overarching actions:
The CRE crunch has placed mounting pressures on financial institutions and their commercial portfolios. But in a market awash with risk, lenders can find new opportunities to balance their portfolios with:
With a targeted approach that aligns policies with trends and decisions with data, your portfolios can still shine in a tough market.
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