While bank net lending to commercial real estate (CRE) turned positive again in May, growing signs of distress for existing loans point to further weakness ahead. The $13.7bn growth in loans secured against commercial (ex-farms) last month was the strongest since February, but remained well below the $22.6bn monthly average in 2022. That figure reflected positive net lending for both multifamily and other commercial sectors, though we wouldn’t be surprised if the outstanding balance secured against offices fell.
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