The BIG CRE Index is a forward-looking benchmark of relative strength of CRE market conditions for community banks. Values are derived from third-party providers and data collected by Banc Investment Group's consulting services group, which provides a loan pricing model used by community banks nationwide. The baseline values reflect the relative condition of each sector compared to the second quarter of 2007.

Conditions in the industrial sector posted the index's largest decline, falling 21.2%, according to Banc Investment Group. Lending conditions in the retail sector dropped 7.7% and fell 7.1% in the office sector while multifamily fell 9%. The data foretells a difficult lending environment for the fourth quarter of 2009 and into the first quarter of 2010.

Banc Investment Group chief executive Chris Nichols says the results "indicate that bankers will face tough challenges in managing their balance sheet in coming quarters and need to be pro-active in addressing problem loans," Banc Investment Group chief executive Chris Nichols says. By Industry, key takeaways from the quarterly report on the index include the following: