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Analysis

Banks Tighten CRE Loan Standards Even More While Demand Weakens

And tenants aren’t having easy credit times either, says the Fed.

The Federal Reserve, releasing the April results for the Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS), once again passed along what has become the banking industry’s standard response when it comes to commercial real estate: “Meanwhile, banks reported tighter standards and weaker demand for all commercial real estate loan categories.”

For all CRE loan categories, banks reported having tightened all queried lending policies, including the spread of loan rates over the cost of funds, maximum loan sizes, loan-to-value ratios, debt service coverage ratios, and interest-only payment periods.

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Erik Sherman

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