DCRE - What's The Fed Watching In CRE? (September Minutes Update)

2025-10-14 06:24:00 ET

Originally published on October 10, 2025

By Rich Hill, Global Head of Real Estate Research & Strategy

What’s the Fed watching on CRE (October Edition)

The minutes of the Federal Reserve’s September 16-17 meeting were released on Wednesday, October 8, 2025. While there were no mentions related to CRE in the last (July) Fed minutes, there were three references this time:

1. The outstanding balance of CRE loans is growing, highlighting continued liquidity in the CRE debt markets.
2. CMBS delinquency rates are rising, but they are a lagging indicator, and delinquency rates for other lender types are lower.
3. CMBS spreads, which are a leading indicator, are tightening, while CMBS issuance is set to reach its highest annual level since 2007.

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