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Total CRE Loans From Banks Hit $3T Even as Originations Cool

New deals have slowed, although Q2 originations were up 23% over the first quarter of 2023.

New reports from the Federal Deposit Insurance Corporation and Mortgage Bankers Association show a somewhat puzzling state of commercial real estate: more than $3 trillion in outstanding loans but commercial and multifamily loan originations down 53% year-over-year in Q2, although up 23% from Q1.

First, the FDIC’s 2023 Risk Review. At the end of 2023 Q1, bank-held CRE loans had exceeded $3 trillion in value. Community banks had 28%, or $865 billion, of the CRE loans on bank balance sheets, “a share that remains outsized compared to their holdings of 15% of total loans.”

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Erik Sherman

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