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- Commercial real estate lending fell for the first time in two years last month amid tight credit conditions
- Debt on commercial property fell to $5.44 trillion in June, driven by a large drop in multifamily lending.
- That trend will continue through the second-half of 2023, according to Capital Economics.
Lending in the commercial real estate shrank for the first time since 2021, a sign that higher mortgage rates and tighter credit conditions are weighing on the sector.
Outstanding commercial real estate debt dropped to $5.44 trillion in June, marking the first drop in commercial real estate lending recorded in two years, according to Refinitiv data cited by Capital Economics.