There was some good news from the latest Federal Reserve’s Senior Loan Officer Opinion Survey (more frequently called SLOOS). Unfortunately, it wasn’t for commercial real estate lending.

During the fourth quarter of 2024, “modest net shares of banks” said they were tightening standards for construction financing, land development loans, and nonfarm nonresidential properties. Multifamily property loan standards largely remained the same.

Also, a modest net share of banks saw demand for construction and land development loans weaken. Overall, demand for other CRE loan types was unchanged, although things differed by bank size. A modest net number of large banks saw stronger demand for nonfarm nonresidential and multifamily financing. Demand in large banks was flat for construction and land development loans. Modest to moderate net shares of other size banks saw weaker demand across all CRE loan times.