CRE Loan Demand Turns Positive For The First Time Since 2022

2025-11-06 09:57:00 ET

By Rich Hill, Global Head of Real Estate Research & Strategy

The Federal Reserve’s 3Q25 Senior Loan Officer Opinion Survey showed unchanged lending standards and the first increase in CRE loan demand since 1Q22. This marks a notable shift in the CRE market after several years of tightening standards and declining loan demand. Looking ahead, the lending backdrop may be more reminiscent of the post-GFC recovery in late 2010–2011 when standards loosened and demand rose. Indeed, given the close directional relationship between lending standards and year-over-year changes in unlevered CRE valuations, the survey suggests potential for accelerating price increases ahead. Conducted between September 22 and October 3, the survey likely captures the recent credit challenges in bank portfolios....

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