In an Unusual Move, Big Bank Balance Sheets Shrink CRE Lending

There’s been a big shift in commercial real estate lending.

“According to the Federal Reserve, in August large domestic banks saw their aggregate loan balances tighten for the first time since January 2022, and their loan balances have declined further over the first two weeks of September,” wrote CoStar’s national director of Capital Markets Analytics, Chad Littell, in a copy of a report sent to GlobeSt.com. “Commercial real estate loans at large banks fell 0.3% in the week ending Sept. 13, driven largely by nonresidential segments.”