Many U.S. banks are starting to see new growth in commercial property loans, according to research from SNL Financial, which estimated $991.2 billion in total volume as of June 30. The tally is 3.3 percent higher than at the same time last year.
“More banks are now on the offense — not on defense anymore — when it comes to commercial real estate,” said Raymond James Financial Inc. banking analyst Anthony Polini.
Lending for apartment buildings, offices, retail centers, and industrial properties took a hit when the economy soured but is starting to pick up again now that real estate values are on the rise and credit quality is improving.
Source: “Commercial-Property Lending Begins to Ramp Up,” The Wall Street Journal (Oct. 15, 2013)