CoStar Insights

Top News: Banks Dial Back CRE Lending in Q1 as Loan Growth Slows to Two-Year Low

by CoStar News | Apr 24, 2017
News in Review

In case you missed it, here's our latest weekly roundup of top national commercial real estate stories, as reported by our plugged-in CoStar News team.

Banks Dial Back CRE Lending as Loan Growth Slows to Two-Year Low

Reflecting the more modest pace of CRE sales volume this year than in the previous two, CRE lending growth by banks in the first quarter dropped to its slowest level of growth in two years, which should help federal banking regulators sleep better after warning about overheated commercial real estate lending. The amount of CRE loans on bank books increased 7.7% in the first quarter, well down from the 11.6% growth rate posted in the same quarter a year ago, according to weekly Federal Reserve data.

TA Realty Continues Cashing Out Real Estate Fund; Sells Multifamily Portfolio to Blackstone REIT

In its second large property disposition this spring, TA Realty LLC has sold a six-property, 2,514-unit multifamily portfolio to Blackstone Real Estate Income Trust for $430 million. TA Realty sold the portfolio on behalf of The Realty Associates Fund IX LP. Earlier this month, TA Realty sold a 45-property industrial and office portfolio from the fund to Brookfield-managed real estate funds for $854.5 million.

Restrained Optimism Reigns in Latest ULI Forecast Predicting More Modest CRE Growth

Reflecting what one real estate economist described as an overall sentiment of "restrained optimism," the latest ULI Real Estate Consensus Forecast sees a more modest rate of commercial real estate transaction activity from the frenzied pace seen in recent years, and a gradual slowing but continued increases in rental rates, occupancy and pricing through 2019. The forecast based on a survey last month of 53 real estate industry economists and analysts representing 39 real estate organizations sees continued growth in CRE fundamentals, but at a more muted pace over the next three years.

Prologis CEO Says US Warehouse Market Remains Strong Despite Strong  Supply Wave

Prologis, the world's largest owner and developer of industrial real estate, projected that U.S. warehouse and logistics supply will remain roughly in check with demand for the rest of the year, despite concerns about overbuilding in certain markets. Demand leveled off to more sustainable levels in the first quarter of 2017 after strong acceleration through much of last year, however, Prologis President and CEO Hamid Moghadam told investors overall demand for prime industrial space remained strong through the first three months of the year.

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