U.S. Banks Show 6% Annual Increase in CRE Lending: Arizona Banks Leading Resurgence in CRE Lending, Multifamily Lending Up 15% Nationally
By Mark Heschmeyer For Costar
The amount of commercial real estate loans on U.S. bank books has swelled by $93.4 billion in the past year, a 6% increase and now totals $1.6 trillion.
Banks in the heavily populated states have lead the way with the largest dollar volume increases. New York and California banks have added more than $14 billion to their totals; Ohio banks were third with a $9.5 billion increase; Texas, $6.1 billion; and New Jersey and Pennsylvania with $4.8 billion and $4.1 billion growth respectively.
Going by percentages, Arizona banks increased their CRE loans outstanding by 50% year-over-year. Utah followed at a 27% increase.
Banks in both Arizona and Utah could see their increasing CRE loan totals continue to grow. Nevada banks’ outstanding CRE loans have declined 33%, an indication that the commercial real estate recovery may have yet to take hold there.
Western Alliance Bancorporation a regional Phoenix-based bank said last month in its quarterly earnings conference call that it expects to see its Nevada pipeline grow in the second half of this year and that it is bigger now than it has been for four to five years.
Based on dollar volume, loans outstanding for non-residential, non owner-occupied properties increased the by largest amount $40.3 billion more than a year ago. Multifamily property loans outstanding increased $35.9 billion.
The increase in non-residential, non owner-occupied properties represented a year-over-year increase of 7% while the multifamily increase was a 15% change.
Arizona banks again showed the highest percentage increase in multifamily lending, 49%; banks in Pennsylvania showed the second highest percentage increase, 44%.
Utah and Arizona banks posted the highest percentage growth in nonresidential non owner-occupied loans outstanding at 90% and 67% respectively. Nevada and Oregon posted the largest decreases, -28% and -15% respectively.
Construction and development loan totals increased $12.8 billion nationally with Arizona banks leading the way with the largest percentage increase and Nevada banks with the largest percentage decrease, 43% vs. -51% respectively.
Owner-occupied CRE lending jumped $4.5 billion year-over-year nationally. Arizona banks again showed the highest percentage growth at 38%. Nevada and Oregon again came in with the largest percentage decreases at -43% and -16% respectively.
Interestingly, all of the owner-occupied increase came from loans to large corporations. In fact, bank CRE lending was up from the first quarter of 2013 this past quarter in every category except small business where total loan dollars were down $12 billion.
From The Editor
The Deal Maker Team was very fortunate to be invited to a meeting last month with Gabriel Gomez, Business Development Officer at the BDFC (Business Development Finance Corporation). Gabriel had some valuable information regarding financing options for business loans ranging from $50,000 to $5,000,000. Some eligible projects include: purchase of existing building, land acquisitions and construction, expansion of existing building, and building improvements. If you or one of your clients could use Gabriel’s help securing a BDFC loan please contact the Deal Maker Team for his contact information.
Keller Williams Southern Arizona 1745 E River Rd Suite 245 Tucson AZ 85718
For information on off market properties from $1,000,000 to $6,000,000 email Chuck@dealmakerteam.com
Chuck Corriere, MBA 520-400-9811
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