After years of tightening credit and shrinking exposure, banks are beginning to hint at a comeback for commercial real estate lending.
Executives from M&T Bank, PNC Financial Services Group, and several other regional lenders said this week they anticipate renewed growth in CRE loan activity by early next year — a notable shift after a prolonged slowdown driven by mounting delinquencies on office property loans.
As of September 30, M&T Bank reported $24.4 billion in commercial mortgages. The Buffalo-based institution plans to prioritize lending in the multifamily sector, followed by industrial properties, according to executives. Select opportunities in retail, hospitality, and healthcare may also be considered on a limited basis.
Still, not every lender is ready to embrace the same optimism. U.S. Bancorp and Citizens Financial Group made no mention of potential CRE lending growth during their most recent earnings calls — a sign that confidence across the sector remains uneven.
