Fourth Quarter Sees Growth in Bank-Held Commercial Real Estate Lending

new Jason stats graphic - June 2015Commercial real estate lenders comprised of U.S. banks and savings and loans increased their investment in both nationwide and Philadelphia commercial real estate by 3.1 percent in the fourth quarter of 2015, according to a news report from the CoStar Group.

The report, provided by the Philadelphia commercial real estate brokerage firm of Wolf Commercial Real Estate – a leading Philadelphia commercial real estate broker in the areas of Philly office space, Philly retail space and other Philadelphia commercial properties — showed the increase followed a jump of 2.7 percent in the third quarter.

When looking at national and Philadelphia commercial real estate listings, the total amount of CRE loans was $1.85 trillion in October, November and December 2015. This tops the $1.62 trillion that was recorded at the apex of CRE markets at the end of the second quarter in June 2007.

Among the fastest-growing categories were multifamily loans, up 4.6 percent from the end of the third quarter to a year-end total of $344 billion and non-residential commercial real estate lending loans, up 3.6 percent to a December 31 figure of $733 billion. Another top performer was the category of construction and development loans that swelled 3.3 percent to $275 billion.

More positive news could be seen in the asset quality category of CRE loans being held on bank and S&L books as delinquent balances fell for the 22nd-straight quarter. In real dollars, that equated to a drop of 5.5 percent and a sum of bad loans of $19.8 billion. This compares to a June 2007 delinquent loan amount of $27.6 billion.

The news also was on the bright side for the industry-wide volume of foreclosed properties being carried on financial ledgers. This fourth quarter total was down 12.2 percent from the third quarter to $8.3 billion. The June 2007 figure, for comparison, was $2.5 billion.

Smiles also could be seen on the faces of those dealing with repossessed properties in the CRE lending field. Despite the industry in general experiencing a small loss in the third quarter, the overall total for the year showed a gain of $215.7 million.

Of the nearly 6,300 FDIC-backed banks and S&Ls reporting financial results at the end of the third quarter of 2015, nearly 60 percent (58.9 percent) reported higher earnings than the comparable quarter in 2014. While still positive, the figure is slightly down when stacked up against the figures from the 2013-2014 comparison.

For more information about Philly office space, Philly retail space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) Leor Hemo (leor.hemo@wolfcre.com) or Lee Fein (lee.fein@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker with expertise in Philly office space and Philly retail space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker that specializes in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space or Philly retail space with the Philadelphia commercial properties that best meets their needs.

As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space or Philly retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

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