Real Wealth Show: Real Estate Investing Podcast How Private Credit Could Reshape $1 Trillion in CRE Lending
Aug 21, 2025
Kathy Fettke chats with Keith Banhazl, a Managing Director at Moody's Structured Finance Group, who specializes in commercial real estate finance. They discuss the seismic shift of $1 trillion in CRE debt from banks to nonbank lenders and the implications for borrowers. Explore how high interest rates and economic challenges are reshaping lending dynamics. Keith emphasizes the importance of understanding loan terms in this evolving landscape and the increasing relevance of private credit as a flexible financing solution.
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CRE Market Size And Private Credit Growth
- Commercial real estate (CRE) is a large, evolving $6T U.S. market with diverse property types beyond office.
- Private credit already holds about $1.5T and is expanding its share of CRE lending.
Office Faces Structural, Uneven Stress
- Office has taken the biggest structural hit since COVID, with remote work accelerating change.
- Some top-tier downtown offices have recovered while others and secondary markets face ongoing stress and conversion needs.
Know What 'Private Credit' Actually Means
- Define private credit as non-bank lending including insurers, PE funds, mortgage REITs, and debt funds.
- Compare lender types before borrowing because terms and structures vary significantly across non-bank players.