Commercial Real Estate Loans On The Rise

Monday, August 12th, 2013

Construction companies are becoming more confident in new developments and more banks are returning to Commercial Real Estate lending according to this article.  Data from the Trepp Market Snapshot Report indicates the northeast saw $21 billion dollars of commercial real estate loans in the past 12 months, more than any other region in the country. 

George Gleason, chairman of the Bank of the Ozarks reported an increase in commercial real estate properties from $824 million to over $1 billion dollars just in June.  Cathay General Bancorp has also seen construction lending pick up.  Chairman Dunson Cheng said “We are doing quite a few new construction loans.  The draw period of a typical construction loan is roughly 15 months. So the balance should grow as we go along.” 

From a local perspective, the latest Current Conditions Index, a monthly rating of the state’s economy, shows strong growth in Rhode Island.  On a scale of 0 – 100, RI’s economy ranked 75 in June, reports RINPR.

This is great news for our lender, developer, and contractor clients (as well as for all of us related professional service providers).  Are you seeing an increase in economic activity in your industry?  Share your comments below.