National + Finance | February 6, 2023

The CBRE Lending Momentum Index declined in the fourth quarter of 2022 due to heightened market volatility amid higher interest rates

CBRE Sees Commercial Loan Closings Down 27% as 2022 Ends

The CBRE Lending Momentum Index, tracking the pace of CBRE-originated commercial loan closings in the U.S., declined by 15% in the fourth quarter of 2022 from Q3 and 27% year-over-year. The index closed Q4 2022 at a value of 305, and CBRE cited heightened market volatility amid higher interest rates.

“The Federal Reserve’s commitment to reduce inflation with aggressive rate hikes continues to heighten market uncertainty, as borrowing costs increase and a lack of price discovery persists,” said. Rachel Vinson, president of debt & structured finance, U.S. for capital markets at CBRE. “While there is plenty of debt capital available waiting to deploy, fewer borrowers are willing to transact unless they have to.”

She added, “We are seeing increased activity from private capital, as well as regional and local banks. We expect demand for shorter-term, fixed-rate debt with shortened call protection to endure well into the second half of 2023.”

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CBRE's Vinson

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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