DBRS Morningstar's Takeaways from CREFC Miami 2023: Day 2

The second day of the conference began with the Industry Leaders Roundtable. It was a real cornucopia of market participants from all reaches of the industry, bringing together lawyers, lenders, regulators, real estate managers, investors, issuers, special servicers, and rating agencies, among others. Most panelists believe a recession is likely in the next six months, but the attitude about the industry was mixed. Some were unsettled and cautious about the current environment, namely rising interest rates and unclear office valuations and capitalization (cap) rates. Others believe selective opportunities are available. Panelists also disagreed on if there is enough liquidity available in the market. Finally, hope for lower interest rates in the near term appears to go against what the Federal Reserve is indicating.

Other panels touched on themes revolving the state of capital markets, Miami’s growth, what to expect from the federal government and how it may affect commercial real estate, and challenges market participants face in the current environment.