As Market Volatility Continues, What Will Happen To CRE Lending?

In volatile economic conditions, the first question many commercial real estate firms ask is, “How will lenders react?” Finding funding for projects can be challenging in even the strongest markets. Now, with interest rates and inflation continuing to soar and rumors of a recession swirling, CRE professionals are feeling the heat.

Federal Reserve Chair Jerome Powell said at a press conference in August that the Fed’s goal is to bring down high inflation rates, but he admitted that the process will likely cause pain for the economy and millions of Americans. This news, paired with growing concerns about the CRE market, has many in the industry concerned about what the lending landscape will look like in the coming months.