Banks lend aggressively on CRE despite downturn fears

Los Angeles /
Apr.April 11, 2017 10:30 AM

From TRD New York: Banks are aggressively lending on commercial properties even as developers and equity investors are starting to pull back amid fears of a downturn.

“It’s tougher right now,” Craig Bender of ING Group’s U.S. real estate lending arm told the Wall Street Journal. “The banks are hungry. The life insurance companies are hungry.”

Total U.S. commercial real estate lending volume decreased slightly to $491 billion in 2016 — down 3 percent from 2015, according to the Mortgage Bankers Association. But that’s mostly because there are fewer acquisitions to finance as investors become more cautious.

Banks, in contrast, are in many cases still bullish. Wells Fargo, for example, plans to lend around the same volume in 2017 as it did in 2016 ($30 billion). Still, its head of commercial real estate Mark Myers said the bank is “more cautious” than a year ago.

Lending bulls point to the loan delinquency rate, which is at the lowest level in more than a decade. A mere 0.59 percent of loans held by banks and thrift associations were delinquent for more than 90 days according to the MBA, compared to 4.21 percent in 2010. [WSJ]Konrad Putzier 


Related Articles

arrow_forward_ios
Renderings of The Star
The Star, a $500M office tower project, looks to light up Hollywood
The Star, a $500M office tower project, looks to light up Hollywood
The Boyd Street fire in May, 2020 (Getty)
LA fire captain sues building, vape shop owners over May 2020 explosion in downtown
LA fire captain sues building, vape shop owners over May 2020 explosion in downtown
(Getty Images)
SoCal’s “Space Beach” is ready for liftoff
SoCal’s “Space Beach” is ready for liftoff
Clockwise from top left: Kilroy Realty CEO John Kilroy, Boston Properties CEO Owen Thomas, TMG Partners CEO Michael Covarrubius and Eastdil Secured CEO Michael Van Konynenburg (Kilroy, LinkedIn via Thomas, TMG Partners, LinkedIn via Van Konynenburg, Getty)
“We gotta get people back to the office”: West Coast landlord execs press for return
“We gotta get people back to the office”: West Coast landlord execs press for return
Oxford Properties CEO Michael Turner and the campus (Oxford)
Oxford moves into LA with $134M industrial buy
Oxford moves into LA with $134M industrial buy
Post-production campus in Burbank sells for $37M
Post-production campus in Burbank sells for $37M
Post-production campus in Burbank sells for $37M
G6 Hospitality CEO Rob Palleschi and Motel 6 San Jose South, one of the largest assets in the portfolio (G6)
Blackstone’s Motel 6 portfolio gets $685M CMBS loan
Blackstone’s Motel 6 portfolio gets $685M CMBS loan
Sares-Regis Group CEO Rob Wagner and Huntington Gateway
Sares Regis inks tenant for 434K sf unfinished Orange County site
Sares Regis inks tenant for 434K sf unfinished Orange County site
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...