Banks Return To The CRE Table With More Lending Appetite

The number of banks reporting tighter loan conditions was almost at zero, according the Federal Reserve’s latest quarterly survey of senior loan officers, first reported by CoStar.

Bank demand for CRE hasn`t reached such levels since the first quarter of 2021.

They have already seized back some market share. Banks accounted for 43% of loan closings in the fourth quarter by non-agency lenders, up by 18% from the previous quarter and 40% from a year ago, according to a report by CBRE.

Banks were back at the top of the pecking order among sources of CRE debt. Life insurance companies were the second-most active lending group, followed by alternative lenders, accounting for 33% and 23% of loan closings in Q4, respectively. The CMBS conduits sector made up the remaining 1.5% of origination volume, down from 3% a year before...   ...more

RSK: For an office loan however, you will need 50 to 60 percent equity.