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The shift comes as borrowers and lenders think creatively about ways to finance transactions in a volatile market.  
Market specialist Malcolm Davies at WAY Capital believes there is a need for more pragmatism and creativity around office conversion projects.
The firm is looking to grow its debt platform and recently hired Dean Dulchinos as head of debt portfolio management to oversee activity. 
A lower leverage, liquidity-constrained environment makes it a good time to be a lender, market participants say. 
Down arrows
KCP's K-LOC designation identified 70 fewer loans as being either at risk of or in default
The firm also believes CMBS delinquencies could rise to top 4%. 
While borrowers are already feeling the impact of higher interest rates, the low DSCRs will present a particular problem as refinancing looms. 
Rent compromises, amenities are keeping occupancy afloat with room for mezz opportunities.
Borrowers are tapping into ample liquidity for acquisitions and developments while lenders are being adequately compensated for risk.
The commercial property market needs to focus less on cosmetic changes to properties and more to legitimate energy efficiency and sustainability.

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