How much longer will this commercial real estate market last?
This question without a doubt is on every CRE professional’s mind and now big banks are becoming increasingly wary of the market.
According to Bisnow, “Commercial real estate lending increased by $26.4B in Q1, but research shows the nation’s largest 25 institutions are beginning to back away from the market.”
This research provided by Federal Reserve data and CoStar, points out that although the total amount of CRE loans on bank books increased, Federal Reserve data also adds that real estate loan exposure actually pulled back at the nation’s 25 largest banks, dropping off about 1% on an annualized basis.
Additional hesitation from banks can be traced to rising interest rates which in turn may decrease the volume of loan refinances.
What do we think about this?
Our managing broker, Tony Hemminger, believes that yes, some sectors will be stronger than others, but they will all see a pullback.
This is where utilizing Hard Money loans will come into play.
If you are interested in learning more about purchasing, selling, or lending then give us a call. 720.344.1174
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