💼 Debt Funds Are Redefining CRE Distress in 2026 📉➡️📈

Bill Rapp - Commercial & Residential Mortgage Broker

Published on: 14/01/2026

Debt Funds and the New Shape of CRE Distress Commercial real estate distress in the current cycle looks nothing like the aftermath of the Global Financial Crisis. While headlines continue to focus on rising defaults and valuation resets, the data tells a very different story: forced asset sales remain historically low. The primary reason is structural—private debt funds, especially those active in mezzanine lending, have fundamentally reshaped how distress is absorbed and resolved in a positive way.