During the global financial crisis, with a "severe lack of liquidity" in the market, lenders partook of an "extend and pretend" approach to avoid writing down assets on their balance sheets. What worked then is facing bigger problems today, especially in office, according to Trepp.

"The disruption caused by the 'too big to fail' institutions was of an unparalleled scale in recent history, resulting in a severe lack of liquidity in the market," Trepp said. "Lenders found themselves with no resale market for the properties they repossessed, leading to massive charge-offs on these assets."

But in the midst of chaos, the Federal Reserve sharply cut rates "to stimulate the broader economy and specifically encourage CRE transaction activity." And it worked well in three ways. As Trepp wrote, "Lenders were motivated to collaborate with borrowers who were willing to fight for their properties, as extending CRE loans into a lower interest rate environment proved beneficial. This strategy offered a lower cost of capital and lower cap rates, consequently driving up property values."