Commercial Real Estate

Identify risk in your CRE portfolio earlier with city-specific macroeconomic scenarios

Expect more of the unexpected

 

The Commercial Real Estate (CRE) market in the US is worth $7.5 trillion, making it one of the largest sectors in the country. Given ongoing economic turmoil, commercial lenders are facing widespread fears of a repricing event in CRE, particularly in the office sector. Regulators and examiners are placing special emphasis on CRE, asking banks to model the impact this may have on their portfolios. ON Scenario Analysis provides lenders the ability to run city-specific macroeconomic scenarios on their CRE loan portfolio using forward-looking ON CRE Forecasts.

PI_Icons_Wide coverage WIDE COVERAGE 6 property types: multi-family, office, retail, industrial, warehouse, and hotels
PI_Icons_Dynamic variable Dynamic variable 20+ dynamic macroeconomic variables used to build CRE scenarios
PI_Icons_Granular_Level Get granular Forecast models for 1000 cities across the US for all property types

Data Sheet: ON Scenario Analysis for CRE

 

Part of the wider ON Credit Intelligence Suite - ON Scenario Analysis for CRE enables banks to identify risk up to 12 months earlier with dynamic forward-looking scenarios.
ONci_ScenarioAnalysis_Datasheet_CRE

Get granular

Increased level of granularity provided by ON Scenario Analysis enables lenders to take the right approach with each borrower. Modeling scenarios down to the metropolitan statistical areas (MSA) and property type means decision-makers at the bank know where to keep lending, where to pull back, and what conversations to have with existing borrowers.

Dynamic macroeconomic variables

ON CRE scenarios are built from the bottom up, using 20+ macro variables and property specific demand and supply data from 100+ MSA. Banks can use ON Scenario Analysis for an independent assessment of how different economic conditions may impact their portfolio and model their own economic scenarios to see how drivers like property values and operating income are affected.

"We can’t rely on the old ways of assessing risk. We need to have the tools to be more responsive to these different types of recessions, which is why OakNorth’s (Credit Intelligence) software is going to be a very important product for a lot of banks."

Daryl Moore
EVP, Chief Credit Executive at Old National Bank
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What We’ll Cover:

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  • How rapidly you’ll see results
  • Ease of installation and cost benefits
  • Current customers and outcomes