Not only has commercial real estate lending caught up to where it was before the great recession in every category except one (construction and development), lending has surpassed where it was before the great recession as well. In a steady stream of signs indicating the real estate market is back, this ranks among the most significant. To quantify, consider the following: going into the summer of 2007, the commercial real estate lending volume was 2 percent less than today.
Not everything is quite so rosy, however. Banks are still wincing from bad debt they foreclosed on. On average, lending institutions have 528 percent more foreclosures on their books than they did in the summer of 2007. To peer at this problem differently, take into account the fact that real estate owned debt stands at $14 billion today, where just seven years ago it was $2.26 billion. All in all, most signs suggest we are on an upswing, even if the scars of the recession haven’t quite healed yet.