The Federal Reserve's Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) regularly checks with banks to better understand their lending landscape. The short take for commercial real estate from the most recent survey is that even tighter underwriting standards can be expected in the future.
And while easing interest rates are eventually expected to support relatively low demand from borrowers, that is unlikely to happen until May or June.
"Over the fourth quarter, significant net shares of banks reported tightening standards for all types of CRE loans," the report noted. "Such tightening was more widely reported by other banks [or those with less than $50 billion in assets] than by large banks." Tightening standards particularly by the "other banks" category were also true for multifamily loans.
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