Marking assets to their current market value is an important aspect of the current crisis. Even if you agree CRE debt should be marked to market, it’s very difficult to do because the assets are not homogenous and because the market is thinly traded in the best of times and almost completely frozen now. CoStar has an excellent article describing these difficulties here.
For a good summary of the mark to market debate in general, see this Naked Capitalism post.
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