Real-Estate Deal Making Slows as Bank Lending Tumbles

Wall Street is tightening the loan spigot on the commercial real-estate industry, which is putting a squeeze on deal making and values.

Banks are lending less and charging higher interest rates for the loans they make to owners and buyers of office buildings, shopping centers and other commercial real estate. The tightening is a response to the sharp increase in interest rates this year triggered by high inflation as well as concerns of a possible recession that would lead to an increase in defaults.

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