U.S. demand for commercial real estate loans up, but lending standards not loosened

From TheReadDeal
January 31, 2012 04:00PM

Summary: While demand for commercial real estate loans are up, lending restrictions from banks reflecting federal policy are not loosened. This is problematic for seekers of new loans and those wanting to refinance.

Key Quotes:
While nationwide demand for commercial real estate loans is up, banks are not loosening lending constraints, it would appear, reviewing figures from the Federal Reserve’s quarterly Senior Loan Officer Opinion Survey on Bank Lending Practices report, released yesterday.

The five- and seven-year commercial real estate loans originated during the boom are beginning to come due in 2012, and many observers have speculated that even borrowers who are not distressed could have trouble refinancing in the current climate. New regulations such as those that demand higher equity ratios, are constraining banks’ lending.


Read the full article at: U.S. demand for commercial real estate loans up, but lending standards not loosened: Fed Report.


A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga