T
he CREF Roundup delivers a concise overview of key developments in commercial real estate finance, tailored for professionals. For deeper analysis, see The Carveout blog.

    **Private Credit’s Surge: Liquidity vs. Risk**

    The CRE Finance Council reports that private credit is rapidly filling the gap left by traditional lenders, who are retreating amid high rates and falling values. Up to $1 trillion of CRE debt could shift to private credit in the next 3–5 years. While this injects liquidity and flexibility, it also raises leverage, reduces transparency, and creates systemic vulnerabilities in a downturn. The main point: private credit reshapes the market but demands vigilant oversight.

    **Weekly Highlights: Government Shutdown, AI, CMBS Delinquency**

    TreppWire’s podcast examines how a U.S. government shutdown could ripple through the CRE sector. It also continues its AI discussion and reports that September 2025 CMBS delinquency rates fell for the first time since February, signaling a modest improvement.

    **Reinventing Malls into Mixed‑Use Hubs**

    CBRE’s podcast explores how malls are evolving into high‑performing, multi‑use destinations that blend retail, entertainment, hospitality, and residential. Financing is now more accessible, with lenders offering competitive debt structures. Success hinges on hyper‑local redevelopment that matches demographics, infrastructure, and competition.

    **Bankruptcy Preference Risks for Secured Lenders**

    An article in The Secured Lender warns that lenders who pay into blocked accounts within 90 days of a debtor’s bankruptcy risk losing secured status and becoming unsecured. To mitigate this, lenders should include survival provisions, lien reinstatement clauses, and indemnification in payoff agreements.

    **Debt Yield: A Cornerstone Metric**

    Trepp’s podcast with Byline Bank’s John Barkidjija (Dr. Debt Yield) explains why debt yield remains essential for evaluating CRE deals. The discussion covers macro forces—rate volatility, tariffs, AI’s growing influence—delinquency resolution trends, recent regulatory reporting changes, and the outlook for potential rate cuts.

    **The Carveout**

    A legal blog for sophisticated capital‑market participants, The Carveout focuses on non‑recourse carveouts and CREF loan platforms, including CMBS, debt funds, private capital, REITs, and life insurers.