Big Banks Are Backing Away From Commercial Real Estate
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.
According to Federal Reserve data, total CRE loans on bank books increased during the first quarter to $2.1 trillion. However, in the aggregate, the 25 largest banks in the United States saw their commercial real estate loan exposure drop about an annualized 1% during Q1. The rest of the nation’s banks, considered collectively, grew their commercial real estate loan portfolios by an annualized 7% during Q1.