Bank CRE Lending Rose $104B in 2014


up_Graph_600x338Banks increased lending to commercial real estate in 2014 by a significant degree, according to a new report by Chandan Economics. There was also a measurable uptick in aggressive underwriting by these institutions, CEO Sam Chandan tells

First, the numbers: Banks’ net lending on commercial and multifamily real estate and construction projects jumped$103.7 billion during 2014, according to Chandan Economics’ Q4 2014 Bank Lending and Default Report. This follows an increase in net lending of $71.4 billion in 2013 and a decline of nearly $8 billion in 2012.

At the pre-crisis peak, net bank lending increased by more than $200 billion in 2005.

Carving out construction finance, net lending on commercial and multifamily real estate increased by $75.1 billion over the year and by $25.2 billion during the fourth quarter, to an all-time high of $1.45 trillion, according to the report. Multifamily mortgages accounted for just over half of the fourth quarter’s net new lending.


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