While bank net lending to commercial real estate (CRE) turned positive again in May, growing signs of distress for existing loans point to further weakness ahead. The $13.7bn growth in loans secured against commercial (ex-farms) last month was the strongest since February, but remained well below the $22.6bn monthly average in 2022. That figure reflected positive net lending for both multifamily and other commercial sectors, though we wouldn’t be surprised if the outstanding balance secured against offices fell.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services