The Real Deal New York

US RE lending bounces back in Q2, surpasses 2015 levels

Banks jump in for cautious CMBS lenders

August 19, 2016 03:44PM

Brian Stoffers

Brian Stoffers

Commercial real estate lending volumes bounced back from their winter slump in the second quarter and even surpassed 2015 levels.

U.S. loan origination volumes grew 5.7 percent year-over-year, CBRE reported. CMBS lending volume is down significantly from last year amid lackluster bond markets and looming risk-retention rule changes, but banks jumped into the fold, the Commercial Observer reported. They increased their share of U.S. commercial real estate lending to 49 percent, CBRE noted, compared to 10 percent for CMBS shops.

CMBS lending fell to $31 billion in the first six months of the year, down from $54.4 billion a year earlier.

“While we remain cautiously optimistic, investors should prepare for additional volatility as the Federal Reserve contemplates potential rate hikes later this year and the CMBS market will have to cope with rising levels of loan maturities and risk-retention issues,” said Brian Stoffers, who head’s CBRE’s TRData LogoTINY debt and financing division. [CO]Konrad Putzier