Domestic banks have reported tighter standards and weaker demand for all commercial real estate loan categories during the second quarter, according to a Federal Reserve survey of senior loan officers. However, the share of banks reporting stricter standards was lower than in the July 2023 study.
While a significant share of other banks reported tightening for all CRE loan categories, large banks reported lending standards were basically unchanged for all types of CRE loans, according to the survey. Meanwhile, a moderate share of banks reported weaker demand for all types of CRE loans.
Foreign banks also reported stricter standards for CRE loans, but unlike their domestic counterparts, foreign banks were more likely to report stronger demand for CRE loans during the second quarter.
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