On 19 June 2025, the Financial Stability Board issued a report on vulnerabilities in non-bank commercial real estate investors. The report assesses vulnerabilities in the non-bank investors that intermediate commercial real estate assets in the form of debt and equity, hold them on balance sheet, or provide financing to those that do (i.e. property owners and developers).

Given certain data gaps, the analysis in the report of non-bank vulnerabilities is focused on property funds and on real estate investment trusts (REITs). Three main vulnerabilities are identified: (i) a liquidity mismatch for some open-ended property funds; (ii) pockets of highly leveraged REITs and property funds, and the need for them to roll over their maturing debt; and (iii) valuation uncertainty and delays in recognising losses. These vulnerabilities may interact with each other. The report also identifies a fourth broader vulnerability around the range of complex interlinkages between banks and non-bank commercial real estate investors, which is difficult to assess.