Commercial Real Estate – The Burden Eases

Posted June 30, 2011

The CRE burden eases to the nation’s 7584 insured banks and thrifts. The total of distressed commercial real estate assets are $171 billion and that’s only 1.3% of all bank assets.

As distress eases, banks set aside fewer dollars to deal with losses, and funds available for lending will increase. This is the sixth consecutive quarter that loss provisions have seen a year over year decline. First quarter 2011 loss provisions fell to $20.7 from $51.6 billion in first quarter 2010.

The total of CRE loans outstanding has fallen by 2% during the first quarter. Insured banks and thrift reported $1.58 trillion in commercial loans on the books at the end of March.

The total of construction and development loans fell by 8%. Multifamily was flat. Total non-residential fell by less than a percent.

Total delinquent commercial real estate loans fell by 2.8% from last year.

For additional detail see Mark Heschmeyer’s article at the link

CoStar News – CRE Loans Taking Less Toll on Nations banks

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