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CBRE Sees Q2 Slowdown in Lending Momentum
Commercial real estate lending slowed in the second quarter of 2023 as market uncertainty weighed on available debt capital, CBRE said Monday. The CBRE Lending Momentum Index, tracking the pace of CBRE-originated commercial loan closings in the U.S., declined by 5.4% from Q1 2023 and 52.2% year over year. The index closed Q2 at a value of 193.
“Despite ample available debt, commercial lending has been hampered by choppy markets,” said Rachel Vinson, president of debt & structured finance, U.S. for capital markets at CBRE. “Borrowers who have to transact in the current environment are turning to shorter-term fixed loans until stability returns. Costlier credit with tighter terms continues to encourage many to sit on the sidelines.”
Banks accounted for the largest share of CBRE’s non-agency loan closings for the fifth consecutive quarter, with 43.4% of the total in Q2, up from 41% in Q1.
- ◦Financing
