May 10, 2017
Favorable commercial real estate lending market conditions continued in Q1 2017, as a result of high investor confidence, attractive equity markets and positive economic indicators. Despite the increases in long-term interest rates, CRE felt limited impact, according to the latest research from CBRE.
CBRE’s Lending Momentum Index, which tracks the pace of U.S. commercial loan closings, fell by 14.3% to 228 in Q1 2017. Despite this decline, March 2017 lending activity was up by a robust 25.2% year-over-year.
Life companies led all other major lenders in Q1 2017, and increased their share of loans closed by CBRE Capital Markets. They accounted for more than 37% of non-agency commercial loan closings in Q1 2017, up from 34% in Q4 2016, and well above their 27% share recorded in Q1 2016.
Banks’ market share slipped substantially to 25.5% of loan volume, down from 43% a year earlier.
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