Sluggish CRE Lending Persists: CBRE
August 15, 2023 | Scott Baltic | Commercial Property Executive
In the face of market uncertainty, CRE lending slowed in the second quarter, according to CBRE. The company’s Lending Momentum Index fell from 204 in the first quarter to 193 in the second quarter, representing declines of 5.4 percent from the first quarter and 52.2 percent year-over-year.
The CBRE Lending Momentum Index tracks the pace of CBRE-originated commercial loan closings in the United States.
Although debt is readily available, “choppy” markets have curtailed lending volume, noted Rachel Vinson, CBRE’s president of debt and structured finance for U.S. capital markets, in a prepared statement. That is moving borrowers to shorter-term fixed loans, as higher borrowing costs are keeping many on the sidelines, she added.
