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- Commercial real estate lending has ground to a near-halt as bond yields soar.
- The volume of loans outstanding rose less than 1% last quarter, the smallest increase seen since 2014.
- As borrowing costs surge and refinancing risks mount, lenders are shying away from the space.
Commercial real estate lending has ground nearly to a halt as bond yields soar and lenders pull back.
Commercial real estate lending slumped to its lowest level in nearly a decade in the middle of this year, according to Trepp data cited by the Wall Street Journal. Outstanding debt in the sector held by banks rose by less than 1% over the second quarter, the lowest rise in lending seen since 2014.