• Commercial Lending on the Rise

    Commercial Lending Is on the Rise. So Are Delinquencies.

    Troubled Loan Totals Climb Fastest on Investor-Backed Properties

    The value of loans backing commercial real estate has never been higher. But since the the pandemic reached U.S. shores early this year, the ability of companies to pay back that debt has become more difficult. Many have been starved for revenue as efforts to contain the coronavirus force businesses to close or restrict operations.

    Here's a look at current lending conditions.

    The pandemic has done little to show the pace of lending.

     

    Lending to support investor-backed properties has topped other categories, nearly double that for owner-occupied real estate.

     

    The pandemic and efforts to contain it have caused is a sudden spike in delinquent commercial real estate bank loans.

     

    Delinquency totals have risen fastest for investor-backed properties, while the increase has been smaller for multifamily and construction loans. Delinquency totals on loans backing owner-occupied properties actually dropped slightly in the most recent quarter, but still remain elevated.